Joel Apolinario and two others were sentenced to life imprisonment for large-scale syndicated estafa.
THE Securities and Exchange Commission (SEC) announced that the Butuan regional trial court has sentenced leaders of the Kapa-Community Ministry International (KAPA) to life imprisonment for syndicated estafa in relation to their illegal investment scheme.
The SEC had participated in the case build up against KAPA, which styled itself as a religious group and was accused of perpetrating a Ponzi scheme, which promises very high returns and pays investors using the money from newly-recruited investors.
Branch 33 of the Butuan RTC found Kapa founder Joel Apolinario and incorporators Cristobal Baradad, and Joji Jusay guilty beyond reasonable doubt of eight counts of syndicated estafa and directed them to pay P195,000 in damages to the complainants against them.
The RTC said they were involved in false pretense or misrepresentation when they claimed to be authorized to engage in a profit-making venture or business.
“Clearly, [Apolinario] together with [Baradad and Jusay] employed fraud or deceit by falsely pretending or misrepresenting that they are authorized by the SEC to engage in profit-making business when in truth and in fact, they are not authorized to do so being a non-stock corporation,” it said, as posted on abogado.com.ph.
The KAPA leaders had promised investors a 30 percent lifetime monthly interest on their investments. But their investors had not received the promised returns.
The RTC also cited the SEC findings that KAPA was engaged in something similar to a Ponzi scheme.
The decision was handed down after the SEC flagged KAPA’s operations and warned the public against it.
In February 2019, it issued a cease and desist order against KAPA, and in April, it revoked its certificate of incorporation.
metrosundaily
