Officials of Kapa Community Ministry International Inc. on Monday asked the Department of Justice to dismiss the criminal charges against them as they denied the allegation made by the Securities and Exchange Commission that they were involved in investment scam.
Four Kapa officials led by founder and president Pastor Joel Apolinario submitted their joint counter-affidavit to the investigating panel seeking to dismiss the complaint for violation of Republic Act 8799 or the Securities Regulation Code filed by SEC last month.
Apolinario was joined by Kapa corporate secretary Reyna Apolinario and officers Rene Catubigan and Catherine Evangelista in the joint answer submitted to the panel of prosecutors through their lawyers.
However, the respondents did not appear before the DOJ for security reasons.
It was also agreed that the Kapa executives would subscribe to their answers before the office of the provincial prosecutor in Sarangani due to security reasons.
The lawyers did not grant media interviews after the hearing and refused to share copies of the counter-affidavits.
Only one of the respondents, Moises Mopia, was present during the hearing.
He asked for more time to answer the charges, and was given by the panel chaired by Assistant State Prosecutor Zenamar Machacon-Caparros until the next hearing on Aug. 5 to submit his counter-affidavit.
Three other respondents—Margie Danao, Marisol Diaz and Adelfa Fernandico—also did not appear before the DOJ panel.
In its complaint filed last June 18, the SEC accused the respondents of perpetrating an investment scam by violating Sections 8 and 28 of the SRC.
Section 8 of the SRC prohibits the sale or distribution of securities without a registration statement duly filed and approved by the SEC.
Section 28, on the other hand, prohibits any person from engaging in the business of buying or selling securities in the country as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.
The SEC also found that respondents violated Section 26 of the law that prohibits Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by other investors.
The SEC said its investigation showed that Kapa and its officers enticed the public to “donate” at least P10,000 in exchange for a 30% monthly “blessing” or “love gift” for life, without having to do anything other than invest and wait for the payout.
The investment scheme operated by respondents involved the sale and offering for sale or distribution to the public of securities, in the form of investment contracts.
SEC chairman Emilio Aquino stressed that Kapa “amassed wealth through an investment scam in the guise of religion and at the expense of the investing public.”
The SEC said it already issued an advisory against Kapa’s operations as early as March 2017 and also issued a cease and desist order last February and an order of revocation of the nonstock corporation’s registration last April.
The commission, through the Anti-Money Laundering Council, also obtained a freeze order from the Court of Appeals on June 4 to preserve some P100 million in assets linked to Kapa.
Based on investigation conducted by the SEC, KAPA and its officers have at least nine luxury cars and sport utility vehicles, and a helicopter.
The group also claimed to have acquired a hospital, a school and other properties.
Earlier this month, the National Bureau of Investigation (NBI) filed syndicated estafa charges against the same Kapa officers and several others.
The NBI sought the indictment of Apolinario and 13 other Kapa officials for eight counts of violation of Presidential Decree 1689 following its fact-finding probe upon complaints filed by three investors of the supposed church group – Virginia Ampo, Kim Ampo, and Judith Lechido.
It was the first syndicated estafa case – a non-bailable charge – filed against the Kapa officers.
The NBI also filed charges of violation of SEC rules against the respondents due to their supposed engagement in fraudulent transactions.