A local court has convicted the leaders of Kapa Community Ministry International Inc. (KAPA), touted as the largest ‘investment scam’ in the Philippines, for syndicated estafa.

In a 37-page order, KAPA founder Pastor Joel Apolinario and other leaders Cristobal Baradad, and Joji Jusay, were found guilty for eight counts of syndicated estafa, as defined and penalized under Article 315 (2)(a) of the Revised Penal Code, in relation to Presidential Decree No. 1689.

The decision was penned by Judge Isah Echem-Tangonan of Regional Trial Court (RTC) Branch 33 in Butuan City on December 12, 2023.

They were sentenced to life imprisonment and will be made to pay actual damages to eight private complainants the principal capital they invested amounting to a total of P195,000.

“Clearly, accused Pastor Joel together with the other co-accused Baradad and Jusay employed fraud or deceit by falsely pretending or misrepresenting that they are authorized by the SEC to engage in profit-making business when in truth and in fact, they are not authorized to do so being a non-stock corporation,” reads part of the court decision.

Accused Junnie Apolinario and Jouelyn del Castillo were acquitted on the ground of reasonable doubt. The warden of Butuan City Jail was ordered to release them unless they are detained for some other lawful cause.

According to the Securities and Exchange Commission (SEC), the agency responsible for the case build-up, “syndicated estafa is committed by any person who shall defraud another by, among others, means of false pretenses or fraudulent acts executed prior to or simultaneously with the commission fraud, by using a fictitious name, or falsely pretending to possess power, influence, qualifications, property, credit, agency, business, or imaginary transactions, or by means of other similar deceits.”

In a statement, the commission said the decision comes around six years after the SEC found KAPA to have enticed the public to invest P10,000 in the guise of a donation, in exchange for a 30% monthly return for life dubbed as a “blessing.”

As early as March 2017, the SEC has issued an advisory against KAPA to warn investors of its Ponzi-like characteristics. A cease and desist order was later issued on February 14, 2019, followed by an order of revocation of KAPA’s certificate of incorporation on April 3, 2019.

The SEC, through the Anti-Money Laundering Council, also obtained a freeze order from the Court of Appeals on June 4, 2019, to preserve the assets linked to KAPA.

The SEC also continued to remind the general public to exercise more caution and discernment as certain supporters and promoters of KAPA peddled false information about the group’s supposed revival.