The Securities and Exchange Commission (SEC) has debunked the claim that the Kapa Community Ministry International (KAPA) will not be a subject of a National Bureau of Investigation (NBI) raid as claimed by two individuals who posted videos on social media site Youtube.
In an advisory released Monday, SEC said: “To set the record straight, KAPA is NOT registered with the Commission under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulation Governing Crowd Funding either as a crowdfunding intermediary or funding portal, nor has it a pending application before the Commission under said Rules. “
“Thus, KAPA is not licensed to engage in Crowd Funding,” it added.
The agency pointed out that it has in February imposed a cease and desist order on KAPA and its officials from engaging in businesses and that on April 3 its commission en banc decided to revoke its certificate of registration.
The agency has also filed a case against the entity and officers, among them Joel A. Apolinario, Reyna L. Apolinario, and Margie A. Danao “for violation of the Securities Regulation Code before the Department of Justice which found probable cause to indict said persons before the appropriate courts.”
The agency made the advisory after Roger Abing Camingawan and Daniel Flash Villegas, in their videos, claimed that KAPA will not be a subject of NBI raid because it was a registered with the agency as a crowd funding entity based on the specified memorandum circular.
Camingawan also claimed that under a certain section of the memorandum, KAPA is registered and ws merely waiting documents that would authorize it become a crowdfunding entity.
In the advisory, the SEC stated: “The public is hereby warned to exercise caution in viewing these kinds of YouTube video posts as they have been found to contain false reports. Samples of these videos are attached herewith for the reference of the public.”
The agency added that even the counsel of KAPA denied it authorized the two broadcasters in posting the videos on social media on its behalf.
The agency reminded that on February 14, the commission issued a cease and desist order against KAPA, Joel A Apolinario and those acting in behalf of the entity.
The order stopped KAPA, Apolinario and the others ”from engaging in activities of selling and/or offering for sale securities in the form of investment contracts in the guise of a donation or any other forms of the same nature, as discussed above.”
The order also directed them “from promoting its investment scheme through the internet and/or delete or remove immediately the promotional presentation of such investment scheme from the websites.”
“Moreover, 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, or any person/s acting for and in their behalf, and such other persons directing or controlling the activities of such corporation, officers, representatives, salesmen and agents, are all ENJOINED from a) transacting any and all business involving the funds in its depository banks, and b) from transferring, disposing or conveying in any other manner any and all assets, properties, real 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,” it added.