SEC warnings on KAPA and others

By Atty. Ruphil F. Bañoc |June 07,2019 - 07:46 AM

When the Securities and Exchange Commission (SEC) in Cebu warned the public about investment scams following the operation of Kapa Community Ministry International, Inc. (KAPA), I remembered the P12 billion pyramid scam by the company identified as Aman Futures Group Phils. Inc. 

The business started in Pagadian City, and due to its success, it expanded to the neighboring cities and provinces in the Mindanao area. It offers to the people a 30-40 percent return of investment within eight days, and a 50-80 percent profit for 18 to 20 days. 

The first who invested were low-income people, but professionals followed because of the enticing promises. Aside from vendors, farmers, drivers, there were local politicians, police, military, government workers, overseas Filipino workers and even retired employees who tried their luck to invest. 

People were convinced because at the first, KA, third months or early stage of their investment they were able to get their payback every due date. They really saw the flow of money.  They saw profits. In fact the early investors were able to buy cars and properties which tempted more people to join. They were made as living testimonies of the company.

When they were already fully sold out, that’s the time that they rolled their whole amount of money and even put more investments. This time they would no longer see the actual money except a piece of paper with the figures stating their profits. 

The months that followed, investors started to file complaints because of the company’s failure to pay back. Thereafter, their office was closed down and its personnel where nowhere to be found. The founder, Filipino-Malaysian Manuel Amalilio with Malaysian name Mohammad Suffian Saaid flew to Malaysia, bringing with him the P12 billion.

Such incident pushed some victims, especially the retirees, to commit suicide. Others become violent after learning that their hard-earned money was gone.

This incident prompted the SEC to be extra careful in monitoring companies that are involved in scams. It gives advisory to the public not to invest in the following: Alifelong Marketing Services Inc.; Secret2Success; Keen and accurate Holistic Trading Corporation; PLanpromatrix Online Co.; Organico Agribusiness Ventures Corporation (ORGANICO); PayBook E-Commerce System Co. LTR; Yeheey Itraffic System Inc.; Unity Wealth/UWealth Premium/Unity Wealth 100; Rigen Marketing and Kapa Community Ministry International, Inc. (KAPA).

SEC also warned the public to be on guard on the following companies: MGA Business Enterprises, Coophub Multimedia Services, Jogle Innovative Marketing, Global Dream Zion, Grappler, Sherpan, BCT Marketing/BCT Motorcycle and Car Trading, RTM Pharmacy and General Merchandise, Diamond Marketing, Fusion Marketing, FMarket, Cirfund, Vibearn, Onepro, BCC Cosmetic Trading, Unlishop Compensation plan Marketing, VUCC, Bitrain, Tcoin, Crowd Royals, ADA Farm Agri Venture and Nermie Marketing/Nermie Health, and Beauty Products Trading.

Recently, Pastor Joel Apolinario, founder of KAPA, has entered in the island of Cebu to entice people to invest in his church offering 30 percent return of investment every month. But investors are asked to sign a donation document, instead of using other terminology. 

Alma Estrada-Dalena of SEC said that they are mulling to form an inter-agency task force with authorities to address concerns on the alleged investment scam of KAPA and other financial companies. 

SEC also revoked KAPA’s certificate of corporate registration on the ground that soliciting investments from its members was neither essential nor necessary to carry out its purpose as a religious corporation. Hence, it’s investment-taking activities in the guise of donations constitutes serious misrepresentation.

On the part of the PNP, PRO-7 Director Brig. General Debold Sinas warned his policemen that they would be relieved if found to have invested in KAPA. Also, Rhea Mar Angtod, the provincial director of DepEd cautioned her teachers not to invest in the said company.

In fairness to KAPA, no member/investor has filed a complaint yet. However, government’s warning may guide them to be extra careful in investing their hard-earned money. 

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