THE camp of the Kapa-Community Ministry International Inc. (KAPA) on Monday asked the Department of Justice (DOJ) to give them more time to answer the complaint filed by the Securities and Exchange Commission (SEC) accusing its officials of amassing at least P50-billion investment through the illegal Ponzi scheme.
During Monday’s preliminary investigation on the complaint for violation of provisions of Securities Regulation Code (SRC) filed by the SEC, lawyer Mae S. Divinagracia told reporters that she had told the panel of prosecutors handling the case to extend the deadline for the filing of the counter-affidavits of her clients due to voluminous documents to study and the need to interview the respondents.
Divinagracia presented herself as counsel for respondents KAPA founder Joel Apolinario, Corporate Secretary Reyna L. Apolinario and Rene Catubigan.
Other respondents in the complaint who were not represented are trustees Margie Danao, Marisol Diaz, Adelfa Fernandico, Moises Mopia and Catherine Evangelista.
“We had to file an extension, or we have to request for an extension because we still have to thoroughly study the records considering that the documents that were furnished to us are quite voluminous. And we also have to fly to Sarangani to conduct the necessary interviews,” Divinagracia said.
The panel of prosecutors lead by Assistant State Prosecutor Zenamar Machacon-Caparros granted the request of KAPA and decided to reset the submission of their counter-affidavits on the next preliminary hearing set on July 29.
Divinagracia also said they asked that the respondents be allowed to subscribe their counter-affidavit before the provincial prosecutor of Sarangani as they cannot appear before the DOJ due to threats to their lives.
In its complaint, the SEC said KAPA violated Section 8 (8.1) of the SRC, which prohibits the selling or offering for sale or distribution of securities without a registration statement filed and duly approved by the SEC.
It added that the respondents violated Section 8 of the SRC which states that “no person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.”
Likewise, the SEC is also asking the DOJ to prosecute KAPA for employing a Ponzi scheme, which is considered a fraudulent transaction prohibited under Section 26 of the SRC.
The National Bureau of Investigation also earlier filed syndicated estafa and violation of the provisions of the SRC before the DOJ against 14 officers of KAPA.
The complaint was filed on behalf of three of the millions of investors of KAPA who claimed that they were duped by its officers into investing their hard-earn money with guaranteed high returns.