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Court freezes assets, bank accounts of KAPA - Here's why it is good news for the victims

The Court of Appeals (CA) has ordered the freezing of several banks accounts and other assets linked to Kapa-Community Ministry International, Inc. (KAPA), a non-stock corporation found to be operating a fraudulent investment scheme.

The freeze order was issued by the appellate court last June 4 upon the petition of the Securities and Exchange Commission (SEC) and the Anti-Money Laundering Council (AMLC).

Under Section 10 of Republic Act No. 9160 (Anti-Money Laundering Act of 2001), the CA may issue a freeze order upon a verified ex parte petition by the AMLC and after determining that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity.

Among the unlawful activities covered by RA 9160 are fraudulent practices and other violations under Republic Act No. 8799 (Securities Regulation Code).

The SEC earlier revoked the certificate of incorporation of KAPA for serious misrepresentation as to what it can do or is doing to the great prejudice of or damage to the general public.

KAPA was found to have recruited and encouraged members to “donate” any amount in exchange for a 30 percent monthly return for life, without having to do anything other than invest and wait for the payout.

Such scheme constituted the sale and offer of securities, in the form of investment contracts, and required a secondary license, according to the SEC.

In offering and selling securities, KAPA committed an ultra vires (beyond one’s authority) act exceeding the privilege granted to it and misrepresented itself to the public by concealing this investment scheme in the guise of a donation to entice the public to donate when in truth and in fact they are investing, the Commission noted.

The investment-taking activity of KAPA also constituted a Ponzi scheme, an investment program that offers impossibly high returns and pays investors out of the capital contributed by later investors.


The Court of Appeals has frozen the assets and bank accounts of Kapa. That means, the state will then proceed with the prosecution of its ring leader and operators.

It will be a long and agonizing legal battle. It might be long, but it will be worth it. Especially if you really want to get your money back.

Wait for the next action form the government. They will surely advise the victims on what to do next.

Whatever is left there will be distributed back to its victims. Maybe not all, but definitely some. Depending on what's left there.

So you better keep those receipts because more likely than not, that will be your only ticket to get your hard-earned money back.

Court freezes assets, bank accounts of KAPA - Here's why it is good news for the victims Court freezes assets, bank accounts of KAPA - Here's why it is good news for the victims Reviewed by AsianPolicy.Press on 6:15:00 AM Rating: 5

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