MANILA - The Department of Justice (DOJ) has indicted seven officers and members of the Kapa Community Ministry International for violation of various provisions of the Securities Regulation Code (SRC).
In a statement released Tuesday, the DOJ said the panel of prosecutors, in its resolution dated Sept. 25, has recommended the indictment of Joel Apolinario, Reyna Apolinario and Margie Danao for allegedly selling or offering for sale securities without having filed a registration statement with the Securities and Exchange Commission (SEC).
Also recommended charged were Adelfa Fernandico, Moises Mopia, Marisol Diaz and Reniones Catubigan for "having employed a device, scheme or artifice to defraud, qualified by the use of computer, social media and video-sharing technology."
The panel ruled the scheme used by Kapa was that of a classic Ponzi scheme, considering the impossibly high yields of return promised to investors.
The panel, likewise, rejected the respondents' argument that such investments were in the form of religious donations, "pointing out that the promise of return negates the giver’s liberality that is the hallmark of every donation."
The SEC on June 18 filed a criminal complaint with the Department of Justice for violation of the Securities Regulation Code against Kapa and 8 of its officers and members after it found that the organization was engaged in a Ponzi scheme.
The SEC said Kapa enticed the public to “donate” at least P10,000 promising a 30 percent monthly “blessing” or “love gift” for life.
The DOJ also warned of warrantless arrest of officers and members of Kapa if they continue to sell investments without a license.
- with a report from Mike Navallo, ABS-CBN News