DAVAO CITY (MindaNews / 24 December) -– The Regional Trial Court (RTC) Butuan City convicted Kapa Community Ministry International Inc. (KAPA) founder Pastor Joel Apolinario and two of its incorporators, Cristobal R. Baradad and Joji A. Jusay, for eight counts of syndicated estafa for soliciting investments in the form of donations with a promise of huge returns.
Apolinario founded “Kapa,” an abbreviation of the Cebuano words “Kabus Padatoon” (Enriching the poor) purportedly to help their poor members.
Joel Apolinario (L) and followers after the raid in a resort in Lingig, Surigao del Sur in July 2020. Photo courtesy of PNP-Caraga
In a 37-page decision dated December 12 but released to media on Friday, RTC Butuan City Judge Isah J. Echem-Tangonan sentenced the three accused to life imprisonment for being guilty of syndicated estafa under Article 315 (2) (a) of the Revised Penal Code in relation to Section 1 of President Decree 1689.
The trial court said the three employed “fraud or deceit” in their investment-taking activities, which was among the elements of the crime.
The accused, who went into hiding for at least six months, were arrested in a joint operation conducted in a resort in Lingig, Surigao del Sur on July 21, 2020 on the strength of the warrants of arrest issued by the trial court.
The decision read in part: “Clearly, accused Pastor Joel together with the other co-accused Baradad and Jusay employed fraud or deceit by falsely pretending or misrepresenting that they were authorized by the Securities and Exchange Commission (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 that private complainants were also enticed to invest because of the promise to receive lifetime interest of 30%, which they never received.
Citing the SEC director Oliver Leonardo, the trial court said Kapa was considered as a Ponzi Scheme, which is prohibited under Securities Regulation Code because it was not authorized to solicit investments.
It explained that a Ponzi scheme is an investment package that promises unrealistic or high returns and the amount promised is merely derived from investments of the newly-recruited members.
It added that the “investment scheme was offered in the guise of love gifts, and out of which a member will receive 30% return in a form of securities under the particular instrument called investment contract.”
The court said the accused falsely pretended or misrepresented that they were authorized to engage in the profit-making venture or business “when they were not authorized to do so being a non-stock corporation.”
It added that Kapa, registered as a religious corporation with the SEC, was not allowed to secure permits to sell securities.
Members of the Kapa Community Ministry International, inc. hold a rally in General Santos City on 13 June 2019 to urge President Rodrigo Duterte to reconsider his order to shut down what he dubbed as an investment scam. The President did not back down on his decision. MindaNews photo by BONG S. SARMIENTO
It said that as early as 2017, SEC received complaints against Kapa, which was operating in several parts of Mindanao, including Bislig City, Sarangani, and General Santos City, and even in Quezon City.
It said Pastor Apolinario admitted that every member was given “financial blessings” in exchange for donation, which Kapa required them to execute a deed of donation and financial blessings.
Apolinario engaged in charitable works and through, his wife, ventured into several businesses, including banana plantation in General Santos, textile factory in Manila, mango plantation, egg farm and poultry production, cellphones and gadgets, and limestone mining and gold mining. (Antonio L. Colina IV / MindaNews)
