The Court of Appeals issued a freeze order on several bank accounts and other assets owned by Kapa-Community Ministry International Inc., an independent religious company that is allegedly operating a fraudulent investments scam.
The CA issued the order on June 4 in response to the petition filed by the Securities and Exchange Commission and the Anti-Money Laundering Council.
Securities and Exchange Commission chairperson Emilio Aquino said the court order would finally stop Kapa from operating its fraudulent scheme that had been going for the past three years.
Aquino said in a press briefing Monday the corporate regulator in April revoked the certificate of registration of Kapa after it was found to be soliciting investments from the public without the necessary license.
The company, however, defied the SEC order and continued to operate, prompting President Rodrigo Duterte to issue an order against Kapa and other investment scams.
Aquino said Kapa could have pooled about P50 billion in investments based on the company’s pronouncements of having 5 million members with a minimum investment of P10,000.
Based on the investigation conducted the SEC, Kapa which led by president and chairman of the board of directors Pastor Joel Apolinario had been luring investors to place their hard-earned money with a promising return of 30 percent a month for life.
Aquino said Kapa’s promise of a 30-percent return a month for life was mathematically unsustainable and unachievable.
“The assets of Kapa is way too short compared to what is being promised. They are just relying on new investors to come in,” he said.
Aquino said he expected Kapa to eventually collapse, just like other investment scams, without any chance of sustaining its business.
Kapa, according to its postings in social media, has 5 million members with investments of P10,000 to a high as P2 million.
Assuming 5 million members and the P10,000 minimum investments, Aquino said Kapa would need to raise P15 billion to cover a one-month of payout or P180 billion a year.
The SEC first issued an advisory against Kapa as early as March 2017, noting the non-stock corporation did not have a license to solicit investments from the public.