Tag Archives: SEC

DABAWENYOS lose P10M to Repa Paluwagan investment scam

SEC-Davao warns public vs. new ‘fraudulent’ money scheme

DAVAO CITY – The Securities and Exchange Commission (SEC) in Davao has warned the public on Wednesday against investing in the new money scheme called Repa Paluwagan.In a statement, the SEC-Davao clarified that the operation of the entity is a “Ponzi Scheme,” an investment fraud… Read More


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KAPA shuts down offices as scam victims demand return of their investments



The Securities and Exchange Commission (SEC) central office in Manila has sent down a team of agents to Mindanao to gather names of coordinators and recruiters of a religious group involved in a multi-million-peso investment scam.  

The SEC earlier had issued an order revoking the certificate of incorporation of Kapa-Community Ministry International, Inc. (Kapa) for engaging in unauthorized investment-taking scheme in violation of Presidential Decree No. 902-A or the SEC Reorganization Act.

The order covered the partners, officers, directors, agents, representatives and all other persons acting for and in behalf of Kapa.

But Kapa continued to operate despite the revocation of its certificate of registration and issuance by the agency of a Cease and Desist Order (CDO) against the company.

Kapa has lured thousands to cough up millions of pesos in investment on promise of 30% monthly interests. 

We will file charges in the various courts once we establish the names of the coordinators and recruiters, said a member of the team of the SEC Enforcement and Investor Protection Department.

The SEC agent adds  that SEC central office has also advised legal divisions of its regional offices to prepare to file charges against the coordinators and recruiters in the courts of the provinces and cities where they operate.

Also to be charged is Kapa founder Pastor Joel Apolinario.

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As the SEC Enforcement and Investor Protection Department agents were dispatched to Mindanao, SEC has advised  the public to report to its head office or extension offices any continued investment-taking activity by Kapa and its allied entities and the names of the coordinators and recruiters. 

Kapa lures the public with a 30 percent monthly return on investment. The “investment” however  cannot be withdrawn as documents that investors sign showed the investments as “donations” to Apolinario’s Kapa.

Apolinario is already subject of warrants of arrests for the Kapa scam in several courts in the Surigao provinces where it first  started operating few years ago.

Earlier reports said that Kapa has closed down its various offices in key cities and municipalities in the Caraga Region, Davao Region, Bukidnon and other parts of Southern Mindanao and the SOCCSKSARGEN area as  hundreds of victims of its investment scam demanded return of their investment.

KAPA shuts down offices as scam victims demand return of their investments

The tsunami of investors demanding their money back developed as the SEC issued the revocation order to Kapa.

Kapa’s other investment arms are the Kapa Kabus Padatuon (Enrich the Poor), Kapa/ Kappa (Kabus Padutoon), Kapa-Co Convenience Store and General Merchandise, and Kapa Worldwide Ministry

The  SEC earlier on February 14, also issued a cease and desist order against Kapa.

In its April 3 ruling, the SEC En Banc revoked Kapa’s  certificate of incorporation for engaging in unauthorized investment-taking scheme and  “serious misrepresentation on what it can do or is doing to the prejudice and damage of the public.”

The revocation of Kapa’s registration is an offshoot of the recommendation of the SEC Enforcement and Investor Protection Department to revoke Kapa’s certificate of incorporation “for offering and selling securities, in the form of investment contracts and in the guise of donations, without the necessary license.”

In its decision , the SEC En Banc  described the Kapa investment scam as similar to the Ponzi scheme which is outlawed by Section 6(i)(2) of Presidential Decree No. 902-A, or SEC Reorganization Act.

“Kapa 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. Such act is indicative of Kapa’s intent to deceive the public on what it can do or is doing to the damage and prejudice of the investing public,” the SEC En Banc said.

“Despite its lack of authority to offer and sell securities, Kapa recruited and encouraged members to ‘donate’ any amount in exchange for a 30 percent monthly return for life, without having to do anything other than invest and wait for the payout,” it said.

Davao City top in foreign investment

Investors pumped P45.7 million in 2007

Foreign investors poured P45.7 million in fresh investments in Davao City last year, an increase of 144 percent from 2006 figures.

Eighty-two newly registered corporations gambled with the biggest ever paid up capital to up the surge of foreign investments in Mindanao’s premier investment haven.

Last year, 54 newly registered corporations pumped P18.7 million in paid up capital as Davao City continues to attract large investors.

Lawyer Javey Paul Francisco, chief of the Davao Office of the Securities and Exchange Commission (SEC) said most of the investors are Koreans, lured by the city’s stable peace and order situation and excellent investment climate. Francisco could not yet give comparative data on how other nationalities fared in the investment race.

Francisco also said English language schools in the city lured the Koreans, who also considered the city’s distance to Korea as a factor in locating investments here.

The cheap cost of doing business mixed up with excellent golf courses, attracted the Koreans, said Francisco.