MANILA -- The Philippine National Police (PNP) has ordered the Criminal Investigation and Detection Group (CIDG) to conduct case build-up against various groups involved in investment scams.
PNP chief, Gen. Oscar Albayalde said the case build-up against at least 12 groups including the Kapa Community Ministry International Inc (KAPA), a religious group that started in Surigao del Sur, will begin this week.
“It's not just about Kapa. There are many groups, especially in Mindanao. All of them are involved in scams. That is why we got a direct order from the President (Rodrigo Duterte) himself and the SILG (Secretary of the Interior and Local Government Eduardo Año) and as I have said, this week, we will see police operations,” he added.
Albayalde said it aims to file criminal charges against the people behind the investment scams.
On Monday, the Securities and Exchange Commission (SEC) said it intends to file criminal charges against Kapa-Community Ministry International, Inc. (KAPA) and its officials for operating an alleged fraudulent scheme, considered as the biggest investment scam ever seen in the country.
This, after the Court of Appeals, issued a freeze order last June 4 on several bank accounts and other assets linked to KAPA upon the petition of the SEC and the Anti-Money Laundering Council (AMLC).
“In fact, we already revoked the certificate of registration of Kapa Ministry and we intend to pursue criminal charges against all the officers and also those who are helping and defending them,” said SEC Chairperson Emilio Aquino in a press briefing.
Aquino said SEC has issued an order of revocation of corporate registration against KAPA last April, and a cease and desist order last February.
KAPA was found to have recruited and encouraged members to "donate" any amount in exchange for a 30-percent monthly return for life, without having to do anything other than invest and wait for the payout.
Aquino considered the 30 percent offer an “unrealistic” return of investments and “mathematically unsustainable.”
He explained that with five million members at a minimum investment of PHP10,000, KAPA would have pooled funds of PHP50 billion. With a monthly return of 30 percent, its payout would reach PHP15 billion a month, or PHP180 billion a year.
Without recruiting new members or soliciting more investments from the public, the pooled funds would have been diminished by the third month, he added.
“KAPA is running a scam. The financials do not show that it has the capability to deliver except to rely on new investors to bring in their money. And we have to put a stop to it otherwise, there will be more victims who will be recruited and then bringing in their money and ultimately, it will collapse,” Aquino said.
Such scheme constituted the sale and offer of securities, in the form of investment contracts, and required a secondary license, according to the SEC.
Under Section 8 of the Securities Regulation Code, securities shall not be sold or offered for sale or distribution without a registration statement duly filed and approved by the Commission.
Aquino also pointed out that donations have no returns.
President Rodrigo Duterte has ordered the closure of investment firms, including KAPA, that offer impossibly high returns. (PNA)
