MANILA -- Government regulators are eyeing prison time of up to 21 years and a fine of up to PHP5 million for the leaders of the Kapa Community International Ministry Inc., led by Pastor Joel A. Apolinario.
Aside from Apolinario, named as respondents in complaints filed by the Securities and Exchange Commission (SEC) are trustee Margie A. Danao and corporate secretary Reyna L. Apolinario for violation of provisions of Republic Act 8799 or the Securities Regulation Code (SRC).
In a statement, the SEC said the offenses carry penal provisions similar to other pyramiding scams successfully prosecuted in the past.
"A person will face a maximum fine of PHP5 million or imprisonment of seven to 21 years or both fine and time behind bars. The penalty to be imposed against the respondents should be one degree higher than what is prescribed by the SRC considering the use of Facebook and YouTube in the illegal investment scheme," the regulatory body said.
The group, which has an estimated 5 million members, pays out PHP100 million a day, according to officials of the National Bureau of Investigation (NBI), which are eyeing other charges for fraud against Kapa officials.
The scheme is a new twist on an old pyramiding scheme where a newly-recruited member who contributes a minimum of PHP10,000 investment, termed by the group as a "donation", earns a "blessing" of 30 percent interest on his investment. The recruiter likewise earns a portion on the initial investment.
Also named in the complaint were Marisol M. Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista, and Rene Catubigan.
Those who have invested money in Kapa may file complaints with the SEC Enforcement and Investment Protection Department at the Secretariat Building, PICC Complex , Pasay City with telephone numbers (02) 818-6337 and (02) 818-5324 or at the SEC Davao City Extension Office at SDC Building, Purok 13, Maa, Davao City.
In Cagayan De Oro, complaints may also be filed at the SEC Building, corner of 14th and Tomasco de Lara Streets or call (088) 857-4325 or (088) 857-7225.
The SEC said they will also name respondents who took part in the unlawful public offering and selling of securities of Kapa.
The commission earlier issued an advisory on Kapa in March 2017 and had issued a cease and desist order on February 14 and revoked the corporation's registration last April 3.
The investment involved the sale and offering for sale or distribution to the public of securities as defined under Section 3 of the Securities Regulation Code.
The SEC said that under Rule 26.3.5 Implementing Rules and Regulations of the SRC, an investment contract is presumed to exist whenever a person seeks to use the money or property of others on the promise of profits.
Likewise, under the SRC, securities shall not be sold or offered for sale or distribution without a registration statement fully filled and approved by the SEC and no person shall buy or sell securities as a broker or dealer unless registered.
The SEC pointed out that since the SRC's enactment 19 years ago it has made a number of successful prosecutions such as that of Francisco O. Borromeo, who was convicted by the Makati Regional Trial Court (RTC).
In 2015, the Makati RTC Branch 56 convicted spouses Saturnino and Rosario Baladjay of the Multitel International Holdings Inc. who were convicted to a total of 455 years in jail and PHP8 million in fines. (PNA)
