The Court of Appeals issued an order to freeze all bank accounts and other assets linked to Kapa-Community Ministry International Inc. (KAPA) following President Rodrigo Roa Duterte’s order of shutting it down over the weekend.
In a press conference, Securities and Exchange Commission (SEC) chairperson Emilio Aquino said KAPA is estimated to have gathered around Php 50 billion from around five million of its members, who are required to make a minimum investment of Php 10,000 annually.
According to reports, KAPA registered as a non-stock organization led by its founder Jose Apolinario and has been recruiting members and enticing them to make a “donation” in exchange for huge returns.
In an estimation, SEC revealed that the organization would need a monthly payout of Php 15 billion to fulfill its promise of providing a monthly return of 30 percent to investors or Php 180 billion a year.
The agency also revoked KAPA’s certificate of incorporation for serious misrepresentation. It also issued a cease and desist order on its operations.
“KAPA is running a scam. We have to put a stop to it otherwise there will be more victims,” Aquino said.