THE COURT of Appeals (CA) has affirmed the Securities and Exchange Commission’s (SEC) decision to revoke the Certificate of Registration of KAPA-Community Ministry International, Inc. (KAPA).
In its decision promulgated March 11 and released recently, the CA’s 6th Division said SEC has established substantial evidence that KAPA was “engaged in an unlawful investment activity.”
On April 3 last year, SEC revoked KAPA’s registration saying it has committed “serious misrepresentation” by offering and selling securities in the form of investment contracts and in the guise of donations in Ponzi scheme manner.
“Kapa in dealing with the public is using its registration with the commission as a religious corporation as a backdrop to solicit investments from the public knowing that it does not have the requisite registration. Such act is indicative of Kapa’s intent to deceive the public on what it can do or is doing to the damage and prejudice of the investing public,” the SEC said in its decision last year.
KAPA had also operated in other names such as KAPA Kabus Padatuon (Enrich the Poor), KAPA-Co Convenience Store and General Merchandise and KAPA Worldwide Ministry.
In affirming the SEC decision, the CA said that KAPA failed to prove that it was not running and investment through solicitation.
The CA decision added that KAPA founder Pastor Joel Apolinario could not deny that his ministry is engaged in a scam as it is explaining the process of their investment scheme in all media platforms.
“…there is substantial evidence to justify the revocation of the petitioner’s Certificate of Corporate Registration,” the CA decision stated.
KAPA attracted a lot of investors and grew into many offices, first in Mindanao and then in the Visayas and Luzon when President Rodrigo Duterte ordered to close Apolinario’s ministry last year.
Weeks later, SEC revoked its registration, but KAPA went up to the Court of Appeals.
