By Jeffrey Damicog
Kapa-Community Ministry Inc. founder and president Joel Apolinario and his fellow co-respondents Monday (July 29) filed their response to the criminal complaint of the Securities and Exchange Commission (SEC) which accused them of engaging in an investment scam.
Apolinario and three of his co-respondents submitted before a panel of prosecutors at the Department of Justice (DOJ) a joint counter-affidavit which serves to refute the allegations of the SEC.
The other two respondents in the joint counter-affidavit are Reyna Apolinario, Catherine Evanglista, and Rene Catubigan.
Meanwhile, the panel of prosecutors chaired by Assistant State Prosecutors Zenamar Machacon-Caparros granted the appeal of other respondents to file their counter-affidavits this August 5.
The panel already began last July 15 the preliminary investigation of the complaint filed by SEC which accused the respondents of having violated Sections 8, 26, 28 of Republic Act No. 8799, the Securities Regulation Code (SRC).
The other respondents in the SEC complaint are Margie Danao, Marisol Diaz, Adelfa Fernandico, and Moises Mopia.
“Those who sell or offer securities to the public without the necessary license may be held criminally liable and accordingly sanctioned or penalized pursuant to the decision of the Supreme Court in the case of the SEC vs. Oudine Santos on March 19, 2014 and within the definition of securities solicitation in the 2015 SRC Rules,” the SEC previously stated.
It said those who are found guilty “face a maximum fine of P5 million or imprisonment of seven to 21 years, or both.”
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 other investors.”
“This qualifies as a fraudulent transaction prohibited under Section 26 (26.3) of the SRC,” it stated.
Under the scheme, the SEC explained Kapa “enticed the public to ‘donate’ at least P10,000 in exchange for a 30 percent monthly ‘blessing’ or ‘love gift’ for life, without having to do anything other than invest and wait for the payout.”