The masterminds of what is considered to be the largest investment scam in Philippine history were sentenced to life imprisonment for syndicated estafa.
The Securities and Exchange Commission said the Regional Trial Court Branch 33 of Butuan City, in a decision promulgated on Dec. 12, found Kapa Community Ministry International Inc. (KAPA) leaders JoelApolinario, Cristobal R. Baradad, and Joji Jusay guilty of eight counts of syndicated estafa.
The SEC considered KAPA’s scheme to be among the biggest investment scams in the country, getting no less than P50 billion from its members.
The SEC participated in the case buildup against KAPA, which was accused of running a Ponzi scheme that promised very high returns and paid investors using the money from newly recruited investors.
Apolinario, also referred to as Pastor Joel, was the founder and president of KAPA, while Baradad and Jusay were among its incorporators.
All three were also sentenced to pay eight actual damages to complainants amounting to P195,000.
“Clearly, [Apolinario] together with [Baradad and Jusay] employed fraud or deceit by falsely pretending or misrepresenting that they are authorized by the SEC to engage in profit-making business when in truth and in fact, they are not authorized to do so being a non-stock corporation,” the lower court said.
KAPA leaders promised investors a 30-percent monthly interest for life on their investments. Relying on this false pretense, the complainants were duped into investing their money.
“The Court takes credence on the testimony of the witness from SEC, who testified that the means employed by KAPA is akin to a Ponzi scheme,” read the court decision.