DOJ orders Kapa execs to answer SEC raps

Among those subpoenaed were Kapa founder and president Pastor Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario and officers Marisol Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista, and Rene Catubigan. (File Photo: Kapa Community Ministry International Inc./Facebook)

MANILA — The Department of Justice (DOJ) ordered officials of Kapa Community Ministry International Inc. (Kapa) to answer charges filed against them by the Securities and Exchange Commission (SEC).

In a subpoena issued on Monday, the investigating panel chaired by Assistant State Prosecutor Gilmarie Fe Pacamarra ordered the respondents to appear before the DOJ and answer the charges of violation of Republic Act 8799 (Securities Regulation Code or SRC) filed against them by the SEC.

Government lawyers required the Kapa officials to submit their counter-affidavits in hearings set on July 5 and 15.

Among those subpoenaed were Kapa founder and president Pastor Joel Apolinario, trustee Margie Danao, corporate secretary Reyna Apolinario and officers Marisol Diaz, Adelfa Fernandico, Moises Mopia, Catherine Evangelista, and Rene Catubigan.

On June 18, the SEC accused the respondents of perpetrating an investment scam by violating Sections 8 and 28 of the SRC. Section 8 of the SRC prohibits sale or distribution of securities without a registration statement duly filed and approved by the SEC.

Section 28, on the other hand, prohibits any person from engaging in the business of buying or selling securities in the country as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.

The SEC also found that the respondents violated Section 26 of the law that prohibits Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by other investors.

Kapa and its officers enticed the public to “donate” at least PHP10,000 in exchange for a 30 percent monthly “blessing” or “love gift” for life.

The SEC issued an advisory against Kapa’s operations as early as March 2017 and also issued a cease and desist order last February and an order of revocation of the nonstock corporation’s registration last April.

The commission, through the Anti-Money Laundering Council, also obtained a freeze order from the Court of Appeals on June 4 to preserve some PHP100 million in assets linked to Kapa.