The Department of Justice has ordered the Securities and Exchanges Commission to reply to the counter-affidavits filed by the firm’s officials led by founder and president Joel Apolinario in connection with the charges it filed against the respondents.
During the continuation of the hearings on Monday, the panel of prosecutors chaired by Assistant State Prosecutor Zenamar Machacon-Caparros also received counter-affidavits filed by Kapa officials Moises Mopia and Mirasol Diaz.
Apolinario and three other leaders of the multi-billion investment firm earlier filed their joint counter-affidavits formally refuting the SEC complaint last July 29.
Two other respondents, Adelfa Fernandico and Margie Danao had also committed to file their counter-affidavits.
The SEC accused the respondents of having violated Sections 8, 26, 28 of Republic Act No. 8799, the Securities Regulation Code (SRC) for selling or offering securities to the public without the necessary license.
The SEC likewise accused Kapa executives to have engaged in a Ponzi scheme, a fraudulent transaction prohibited under Section 26 (26.3) of the SRC.
Under the scheme, Kapa enticed members to ‘‘donate’’ at least P10,000 in exchange for a 30 percent monthly ‘‘blessing’’ or ‘‘love gift’’ for life.
A separate charge for swindling and other charges against the Kapa officials remains pending before another prosecution panel.
