THE Securities and Exchange Commission (SEC) has invalidated the registration papers of religious organization Kapa-Community Ministry International, Inc. (Kapa) for its illegal solicitation of investments from the public.

In a statement issued Friday, the Commission en banc said it has granted the SEC Enforcement and Investor Protection Department’s petition to revoke Kapa’s certificate of incorporation as it continues to offer and sell investments without the necessary license.

The SEC is allowed to revoke a firm’s certificate of incorporation as per the SEC Reorganization Act, should the company be misrepresenting what it can do, thereby causing great prejudice and/ or damage to the general public.

“Kapa in dealing with the public is using its registration with the Commission as a religious corporation as a backdrop to solicit investments from the public knowing that it does not have the requisite registration,” the commission said in its decision.

Kapa has allegedly been recruiting and encouraging members to donate any amount to the organization, in exchange for a 30% monthly return for life-without doing anything other than invest and wait for the payout.

“Kapa misrepresents itself to the public by concealing this investment scheme in the guise of a donation to entice the public to ‘donating’ when in truth and in fact they are investing,” the SEC said.

“It is by these acts that Kapa’s Certificate of Corporate Registration should be revoked so that it can no longer perpetrate its fraudulent and misleading acts through the privilege granted to it by the State.”

The commission also said that Kapa’s activities resembled that of a Ponzi scheme, wherein a group derives its profits from investors instead of selling actual products.

The SEC has initially issued advisories warning the investing public against Kapa, noting that while it is a registered corporation, it has not secured a secondary license that would allow it to offer and sell securities.

The commission last Feb. 14 slapped a cease and desist order against Kapa’s partners, officers, directors, agents, representatives and all other persons acting in its behalf, as well as other groups under its name: KAPA Kabus Padatuon (Enrich the Poor), KAPA/ KAPPA, KAPA-Co Convenience Store and General Merchandise, and KAPA Worldwide Ministry.

The order was made permanent after Kapa failed to file a motion for its lifting.

The religious group was founded by Joel A. Apolinario, who describes himself as a pastor. Mr. Apolinario was previously charged with syndicated estafa due to his involvement in the investment scheme, although his case was dismissed for lack of parties interested in pursuing the complaint. — Arra B. Francia

RELATED ARTICLESMORE FROM AUTHOR