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SEC warns of fake news from KAPA.

By James A. Loyola

The Securities and Exchange Commission (SEC) is warning the public to be more cautious and discerning amid the disinformation campaigns of investment scammers.

This is in light of the false claims by Kapa-Community Ministry International (KAPA), in particular, on social media. Supposedly, the group was poised to secure the necessary licenses to resume its operations.

Most recently, KAPA falsely claimed that the Bangko Sentral ng Pilipinas released a statement purportedly approving its investment scheme and questioning delays on the part of the SEC. The central bank refuted such claim.

KAPA also falsely claimed that it already filed with the SEC an application for a secondary license to sell and offer for sale securities to the public.

The Commission has not received any application for a secondary license from KAPA, as verified by the SEC Company Registration and Monitoring Department (CRMD). Besides, KAPA does not have a juridical personality to make such application.

On April 3, the Commission revoked the certificate of incorporation of KAPA for serious misrepresentation of what it could do or was doing to the great prejudice of or damage to the general public.

KAPA, formerly registered with the SEC as a non-stock corporation, had solicited investments from the public without securing a secondary license first. Worse, the group had employed a Ponzi scheme.

Under its scheme, KAPA had enticed the public to "donate" P10,000 in exchange for a 30 percent monthly "blessing" or "love gift" for life, without having to do anything other than shell out money and wait for the promised payout.

On June 18, the Commission filed a criminal complaint against KAPA, its founder and president Joel A. Apolinario, trustee Margie A. Danao, corporate secretary Reyna L. Apolinario and other promoters of the investment scam.

"We enjoin the investing public to be more discerning with and critical of any promises and persuasions made by fraudsters," SEC Chairperson Emilio B. Aquino said.

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Title Annotation:Business News
Publication:Manila Bulletin
Date:Aug 27, 2019
Words:323
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