Metro Manila (CNN Philippines, December 21) — A Butuan City court has sentenced the masterminds of Kapa-Community Ministry International Inc. (KAPA) to life imprisonment after finding them guilty of operating the so-called largest investment scam in Philippine history.
Promulgated on Dec. 12 and publicized on Thursday, Branch 33 of the Butuan City Regional Trial Court convicted KAPA founder and president Pastor Joel Apolinario and incorporators Cristobal Baradad and Joji Jusay of eight counts of syndicated estafa.
The court ordered them to pay actual damages to the eight private complainants, an accumulated amount of ₱195,000. According to the 37-page decision, an interest at 6% per annum based on that amount was imposed from the finality of the ruling until full payment.
The Butuan City Prosecutor’s Office charged the KAPA officers with syndicated estafa in January 2023 in one of a string of cases lodged against them.
In July 2019, the National Bureau of Investigation also filed before the Department of Justice complaints for five counts of violation of the Securities and Regulations code and eight counts of syndicated estafa against Apolinario and 14 KAPA officials.
In February 2020, Branch 21 of the Cagayan de Oro City Regional Trial Court issued a warrant of arrest against Apolinario and eight other people for the same crime.
The Security and Exchange Commission (SEC) previously said the group has five million members. KAPA has been insistent before that it was a religious group, promising a \”blessing\” of 30% monthly interest for life to those who \”donate\” at least ₱10,000.
The SEC illustrated that if the group has five million members, it would have pooled ₱50 billion worth of funds. It would need at least ₱15 billion monthly to pay the members.
The Butuan City court acquitted co-accused and original KAPA board of directors Jouelyn Del Castilla and Junnie Apolinario on the ground of reasonable doubt, noting they resigned after learning the \”true intention of Pastor Apolinario.\” The court ordered their release.
\”Clearly, accused Pastor Joel together with the other co-accused 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,\” read the decision penned by presiding Judge Isah Echem-Tangginan.
\”Also, in consideration of the promised 30% monthly interest made by the accused, the private complainants were enticed to part [with] their money, which they failed to receive the promised return despite demands,\” it added.
The court said conspiracy is \”evidently present\” and that it cannot be denied that the three participated in a \”network of deception.\”
It said it found the \”donation\” to KAPA was not the \”simple donation\” referred to in the Civil Code of the Philippines.
\”The Court takes credence on the testimony of the witness from SEC (Securities and Exchange Commission), who testified that the means employed by KAPA is akin to a Ponzi scheme,\” it also said.
The SEC issued an advisory as early as March 2017 to warn investors about KAPA’s Ponzi-like characteristics.
The commission said a cease and desist order was issued in February 2019 then an order of revocation of KAPA’s certification of incorporation in April of the same year.
It filed a complaint against KAPA in 2019 before the Department of Justice for violating the Securities Regulation Code. On the same month, it secured a freeze order from the Court of Appeals that covered all bank accounts and properties linked to the group.
