Following the government’s crackdown on the religious group Kapa-Community Ministry International Inc. led by Pastor Joel Apolinario, the Securities and Exchange Commission is giving tips on how to determine if a company is a fraud or a scam.
Kapa has more than 10 million members and majority of it are Overseas Filipino Workers (OFWs). Kapa stands for Kabus Padatoon which means making poor people rich.
The scheme involves receiving donations and in exchange will get 30 percent monthly return often called as love gift or monthly blessings.
SEC said that it should be first and foremost to check if the company is SEC registered and if the security salesman is licensed.
“Una, dapat yung entity ay rehistrado sa SEC. Ito ay pwedeng korporasyon or partnership. Pangalawa dapat ‘yung investment contract or securities ay rehistrado din po,” SEC Secretary Armando Pan told GMA News.
“Pangatlo, yung mga nagbebenta or nagso-solicit ay lisensiyado bilang security salesman,” Pan added.
The list of licensed salesmen can be found on the SEC’s official website.
The SEC also added that people should be wary if the promises are too good to be true.
The Commission also said that Kapa’s 30% return and for life is ‘impossible’.
The SEC already issued a cease and desist order to Kapa in March. The agency also told Kapa to stop soliciting money because it lacks necessary permits to operate.
Kapa members deny that this is an investment scam and they have yet to receive any complaints form its members.
