SEC secures P100M in various Kapa assets

Securities and Exchange Commission

Securities and Exchange Commission (SEC) recently secured P100 million in assets supposedly belonging to a religious group, which the appellate court had ordered frozen.

Over a statement emailed over the weekend, the SEC stated the assets of the KAPA Community Ministry International Inc. comprised of policies, cryptocurrency holdings, nine luxury cars, a sports utility vehicle, a helicopter, a hospital, a school and other unnamed property.

The SEC, along with the Anti-Money Laundering Council (AMLC), requested the Court of Appeals to freeze KAPA’s assets after the religious group was found to be ostensibly engaging in unauthorized solicitation of investments from its members and promising 30-percent returns.

SEC stated KAPA would need P15 billion monthly to pay its alleged 5 million members, assuming they each donate a minimum of P10,000, which was “unrealistic and mathematically unsustainable,” given that the entity “barely made P1 million” in profits in 2018.

KAPA, founded by one Joel Apolinario, who acknowledged himself as a pastor and who listed the group with the SEC as a nonstock corporation, which means it was unauthorized to implore investments from the public.

The SEC cited the petition to freeze KAPA’s assets wanted to protect the investors and prevent the alleged illegal operations of the group.

Also, the SEC issued a cease and desist order this year against KAPA and its affiliates, as well as the cancelation of its certificate of incorporation.

The organization persisted until President Rodrigo Duterte on June 7 ordered the National Bureau of Investigation and the Philippine National Police to shut it down.

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