DOJ panel finds probable cause to indict Kapa founder Apolinario, other officials over Ponzi scheme — Perete

(Eagle News)–A Department of Justice panel has found probable cause to indict officials of the Kapa Community Ministry International Inc. for violations of the Securities Regulation Code, Justice spokesperson Markk Perete said.

According to Perete, in its 21-page resolution dated  Sept. 25, the panel recommended the indictment of Joel Apolinario, his wife Reyna, Margie Danao, Adelfa Fernandico, Moises Mopia, Marisol Diaz and Reniones D. Catubigan.

The Apolinarios and Danao were ordered indicted for their alleged  sale or offer of sale of securities without having filed a registration statement with the Securities and Exchange Commission.

The three and  Fernandico, Mopia, Diaz and Catubigan were also ordered indicted for allegedly having employed a device, scheme or artifice to defraud, qualified by the use of computer, social media and video-sharing technology.

“The panel ruled the scheme employed by KAPA and the respondent-officers to be a classic Ponzi scheme considering the impossibly high yields of return promised to investors,” Perete said.

He said the panel also  rejected the respondents’ argument that the investments were “in the nature of religious donations, pointing out that the promise of return negates the giver’s liberality that is the hallmark of every donation.”

“The necessary information to charge respondents of the foregoing violations shall in due time be filed in the proper court,” Perete said. With a report from Moira Encina