The Securities and Exchange Commission this week warned the public against false claims in a YouTube broadcast saying that KAPA Community Ministry International Inc. is already registered with the SEC as a crowd funding entity.
In an advisory received by Edge Davao yesterday from the SEC information office in Davao City, the Commission said it was made aware of YouTube videos featuring the alleged news relayed by anchors, Roger Abing Camingawan and Daniel Flash Villas in their radio broadcast stating, among others, that KAPA Community Ministry International, Inc. (KAPA) will not be subjected to NBI raid since it is already registered with the Commission as a crowd funding entity as a result of the issuance of SEC Memorandum Circular No. 14, Series of 2019.
Furthermore, in the said YouTube videos, Mr. Camingawan further declared that by virtue of Section 2 Paragraph (Q), “Registrar of Qualified Buyers,” KAPA is now registered as a crowdfunding entity and that KAPA is now merely awaiting the document that authorizes them to be a crowdfunding entity.
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.
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.
Further, KAPA through its counsel on record has disclaimed authorizing the publication of a myriad of posts on social media claiming that only authorized officers of KAPA, namely: Rene Catubigan and Ronnie Garay may speak on behalf of the entity.
The public is reminded that on 14 February 2019, the Commission en banc issued a Cease and Desist Order against KAPA, the respondent Joel A. Apolinario and those acting for and in behalf of KAPA. The dispositive portion of said Cease and Desist Order reads, as follows:
“Wherefore, premises considered, KAPA Community Ministry International, Inc., KAPA Kabus Padatuon (Enrich the Poor), KAPA/KAPPA (Kabus Padatoon) KAPA-CO Convenience Store and General Merchandise, KAPA Worldwide Ministry, and/or Mr. Joel Apolinario, their partners, officers, directors, agents, representatives, conduits, assigns and any and all persons claiming and acting for and in their behalf are hereby ordered to immediately cease Page 2 of 4 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 or any other forms of the same nature, as discussed above.
“Furthermore, the subject entities and individuals are directed 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.
“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.
“The said Cease and Desist Order was eventually made permanent and is in full force and effect up to the present. Further, on 3 April 2019, the Commission en banc rendered a Decision revoking the Certificate of Registration of KAPA.”
Finally, the Commission had already filed a criminal complaint against KAPA and its directors, officers and agents including 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, it said. AMA