KAPA 'donors' can pray to court to get money or 'blessings' back - The Most Popular Lists


KAPA 'donors' can pray to court to get money or 'blessings' back

Hoping for a better life, members of non-stock and independent religious corporation KAPA Community Ministry International, Inc. donated their money expecting to receive a return in “blessings”.

But donors are now uncertain whether they can still get their money back amid accusations that KAPA orchestrated a fraudulent investment scheme.

Calling on the government to reverse its actions against their organization, thousands of KAPA members held prayer rallies across the country last month. But the plea seemed to have fallen on deaf ears, with the National Bureau of Investigation filing syndicated estafa and other raps versus KAPA’s founder and officials.

Meanwhile, the Court of Appeals — acting on a petition filed by the Securities and Exchange Commission and the Anti-Money Laundering Council — issued a freeze order on several banks accounts and other assets linked to KAPA.

KAPA Ministry Taytay Branch holds a thanksgiving prayer on June 16, 2019 as they call on President Rodrigo Duterte to allow their investment scheme to operate again. 

With its assets frozen, KAPA will no longer be able to give investors the returns they were promised.

Can donors still get their money back?

KAPA stands for Kabus Padatoon, which is Bisaya for "make the poor rich." But authorities warned it will actually not do that.

The SEC explained that KAPA’s activity constituted a “Ponzi” scheme, an investment program that offers impossibly high returns and pays investors out of capital contributed by newly recruited members.

READ: Trillanes urges KAPA members to impeach, file class suit vs Digong: Pag nanalo, inyo kayamanan ni Duterte!

Comments online from people claiming to be members have raised that KAPA's "donors" are not complaining and that the ministry should be given a chance to just return the money to members who want their "donations" back.

But it will not be that simple.

In an interview with CNN Philippines last month, Justice department spokesperson Markk Perete said the government can’t guarantee KAPA members a refund.

“That would really depend on the liquidity of the company at the time it may be ordered to return,” Parete said.

WATCH: Mayor Inday Sara Duterte finally comments about KAPA Issue

But according to corporate regulators, KAPA’s investment scheme is “unsustainable.” Without recruiting new members or soliciting more investments from the public, KAPA’s pooled funds will not last beyond three months, the SEC said.

The Aman Futures case

Many watchers have qualified that KAPA’s case brings to mind the multibillion-peso scam involving Aman Futures Group Philippines, Inc. — which has been tagged as one of the biggest scams in the Philippines.

The Aman Futures scandal was exposed in October 2012 after the firm was accused of siphoning as much as P12 billion from some 15,000 investors — mostly farmers, fisherfolk, government employees and market vendors, among others.

According to reports, Aman Futures had promised its investors a 30%-40% return on investment within eight days and a 50%-80% return after 18 to 20 days.

It turned out, though, that early investors were allegedly being paid using the contributions of new members. The scam collapsed when Aman Futures ran out of money to pay its members the promised profits.

Victims then filed charges of syndicated estafa. The Court of Appeals issued a freeze order on all bank accounts and finance companies linked to Aman Futures.

READ: KAPA members want their founder Joel Apolinario to run for Presidency in 2022

BusinessWorld reported in 2016 that investors—particularly Fabian Tapayan, a complainant in a syndicated estafa case related to the scam—had yet to recover their investments.

Class suit an option

To recover the donors’ investments, the SEC and Malacañang said investors may file a class suit against KAPA.

Under the Rules of Court, the requisites of a class suit are:
  • The subject matter of controversy is one of common or general interest to many persons;
  • The parties affected are so numerous that it is impracticable to bring them all to court; and
  • The parties bringing the class suit are sufficiently numerous or representative of the class and can fully protect the interests of all concerned.
  • However, media reports say only the NBI—and three investors who have come forward—have so far filed a complaint against KAPA.

Quoting NBI Regional Director Patricio Bernales, Sun.Star reported on June 11 that while investors may sue KAPA, their money will not be returned immediately as “it will form part of the evidence” against the group. — With reports from BusinessWorld

READ: KAPA Founder Joel Apolinario stashed KAPA’s assets in 10 businesses owned by wife -SEC

Found this article interesting? Share it with your friends! 👍🏼

This article first appeared on Philippine Star.

No comments:

Post a Comment

Enjoyed this article?

We appreciate any amount of donation to keep the inspiring stories coming from our team! 🙏