A regional trial court in General Santos City dismissed the petition of Kapa-Community Ministry International Inc. to restrain the Securities and Exchange Commission from proceeding with criminal complaints against the church group for soliciting investments from the public without the necessary license.
“Accordingly, the motion is hereby denied and this case is hereby ordered dismissed,” General Santos Judge Oscar Noel Jr. ruled in an order issued on June 17.
The SEC said the decision of RTC Branch 35 to dismiss the case and deny the request of Kapa for the court to issue a show cause order against the SEC would pave the way for the legal issues surrounding Kapa’s operations to proceed.
Kapa filed the petition on April 4 after the SEC ordered it on February 14 to cease and desist from selling and offering securities, in the form of investment contracts and in the guise of donations, to the public without the necessary license.
The RTC in General Santos City initially issued a writ of preliminary injunction against the SEC on April 10. The SEC, however, maintained that the court did not have jurisdiction over the matter.
The Revised Corporation Code of the Philippines says no court below the Court of Appeals will have jurisdiction to issue a restraining order or preliminary injunction on any case or controversy that directly or indirectly interferes with the exercise of SEC’s powers and duties.
The SEC on April 3 issued an order revoking the corporate registration of Kapa.
The SEC through the Anti-Money Laundering Council obtained a freeze order from the Court of Appeals on June 4 to preserve the assets linked to kapa to protect the affected investors.
On June 18, the SEC filed a criminal complaint against Kapa along with its operators and promoters before the Department of Justice for violations of the Securities Regulation Code.
The DoJ is conducting preliminary investigation on the complaint filed by the SEC.
Meanwhile, the National Bureau of Investigation along with three aggrieved investors filed a complaint against Kapa before the DoJ on July 8 for syndicated estafa.
The SEC issued an advisory against Kapa as early as March 2017 for enticing the public to “donate” at least P10,000 in exchange for a 30 percent monthly “blessing” or “love gift” for life, without having to do anything other than invest and wait for the payout.