THE Securities and Exchange Commission (SEC) said the Cagayan de Oro City Regional Trial Court (RTC) Branch 21 has issued a warrant of arrest to Kapa-Community Ministry International (KAPA) founder and president Joel Apolinario who is facing charges of syndicated estafa.
The SEC said the arrest warrant covers eight other KAPA officials: Junnie Apolinario, Maria Pella Sevilla, Cristobal Barabad, Nonita Urbano, Nelia Nino, Jouelyn Del Castillo, Joji Jusay and Albert P. Buhangbuhang.
The Bislig City RTC Branch 29 earlier issued warrants of arrest against Apolinario, together with KAPA corporate secretary Reyna L. Apolinario, trustee Margie Danao and promoters Reniones Catubigan, Marisol Diaz, Adelfa Fernandico and Moises Mopia, for violations of Republic Act No. 8799, or the Securities Regulation Code (SRC).
“On February 19 and 27, Mr. and Mrs. Apolinario, and Catubigan, respectively, surrendered and posted bail for their temporary liberty while facing the investment fraud charges filed by prosecutors at the Department of Justice (DOJ),” the SEC said.
In separate charges, the DOJ has accused KAPA of “willfully, unlawfully and criminally” engaging in the selling or offering for sale or distribution of securities in the Philippines without a registration statement duly filed with and approved by the SEC.
Accordingly, the DOJ charged KAPA, Mr. and Mrs. Apolinario and Danao of violating Sections 8(8.1), 26.1 and 28 of the SRC. It also indicted Diaz, Fernandico, Mopia and Catubigan for violation of Section 26.1 of the SRC for promoting the investment scam.
The DOJ further charged Diaz before the Antipolo RTC for violation of Section 28. It filed similar information against Mopia and Fernandico with the Quezon City RTC Branch 93, which then issued warrants of arrest against the respondents on December 2, 2019.
Section 8(8.1) of the SRC mandated that securities shall not be sold or offered for sale or distribution within the Philippines without a registration statement duly filed and approved by the SEC.
Section 26.1, meanwhile provides that it shall be unlawful for any person, directly or indirectly, in connection with the purchase or sale of any securities to employ any device, scheme, or artifice to defraud.
Section 28 adds that no person shall engage in the business of buying or selling securities in the Philippines 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 criminal proceedings stemmed from the complaint filed by the SEC on June 18, 2019 against KAPA, after finding the group to have enticed the public to invest at least P10,000 in exchange for a 30 percent monthly return for life, without having to do anything other than invest and wait for the payout.
The SEC also found KAPA to have employed a Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by later investors.
