THE Securities and Exchange Commission (SEC) has issued a cease and desist order against KAPPA Community Ministry International Inc. that allegedly solicits investments from the public in exchange of a promised big returns.
In a 17-page order issued last February 14, SEC has directed KAPPA Community Ministry International Inc., KAPA Kabus Padatuon (Enrich the Poor), KAPA/KAPPA (Kabus Padatuon), KAPA-Co convenience store and General Merchandise, KAPA Worldwide Ministry to immediately cease and desist under pain of contempt, from engaging in activities of selling and/or offering for sale securities in the form of investment contracts in the guise of a donation.
KAPA's president and chairman of the board of directors Pastor Joel Apolinario and all its officers, directors, partners, agents, representatives, conduits, and any and all persons claiming and acting for and in their behalf are also ordered to cease from promoting its investment scheme through the internet and/or delete or remove immediately the promotional presentation of such investment scheme from the websites.
The SEC also said "to forestall grave damage and prejudice to all concerned and to ensure the preservation of the assets for the benefit of the investors, respondents or any of their representatives are all enjoined from transacting any and all business involving the funds in its depository banks and from transferring, disposing or conveying in any other manner any and all assets, properties, real and or personal, and including bank deposits, if any, of which the named persons herein may have any interest, claim or participation whatsoever, whether directly or indirectly, under their custody, immediately upon receipt of this order, until further orders from this commission."
The commission's Enforcement and Investor Protection Department is directed to serve the order.
The commission was alarmed after numerous reports and complaints have reached their office that KAPA which is operating in some areas in Mindanao, is offering insurance from the public to invest in their company.
An advisory was earlier issued by the commission against KAPA after learning that it is not authorized to solicit investment as it requires a secondary license to do so as provided under the Securities Regulation Code (SRC).
