MANILA, Philippines – The Bislig City Regional Trial Court in Surigao del Sur ordered the arrest of Kapa-Community Ministry International's founder, key officers, and promoters for the investment fraud charges lodged by the Securities and Exchange Commission (SEC).
The court's order released on Tuesday, February 11, directed the arrest of Kapa's founder and president Joel Apolinario, trustee Margie Danao, and corporate secretary Reyna Apolinario. Kapa promoters Marisol Diaz, Adelfa Fernandico, Moises Mopia, and Reniones Catubigan were also ordered arrested.
The Department of Justice has accused Kapa of "willfully, unlawfully, and criminally" selling securities in the Philippines without the necessary documents from the SEC.
The Quezon City Regional Trial Court had issued an arrest warrant against Fernandico and Mopia in December 2019.
The SEC earlier said Kapa employed a Ponzi scheme, an investment program that offers impossibly high returns and pays investors using the money contributed by later investors. (READ: EXPLAINER: How Kapa Ministry took advantage of investors)
Kapa's network widened in several provinces, mostly in Mindanao, as it enticed people to invest at least P10,000 in exchange for a 30% monthly return for life, without having to do anything other than invest and wait for the payout.
Kapa's assets have been frozen since June 2019 to protect the interests of affected investors. (READ: [ANALYSIS] Kapa Ministry: A symptom of poor financial inclusion)
"It is about time that the people behind Kapa answer the criminal charges filed against them," SEC Chairperson Emilio Aquino said. – Rappler.com