Despite claims on social media, KAPA 'not a Bangko Sentral-supervised entity'
MANILA, Philippines — The Bangko Sentral ng Pilipinas on Wednesday belied claims made by KAPA Community Ministry International Inc., saying the non-stock and independent religious corporation accused of orchestrating a fraudulent investment scheme is not a BSP-supervised entity.
“[The BSP] advises the public that it has not released any statement or any issuance concerning [KAPA] or any of its affiliates,” the central bank said in a statement.
The central bank added: "[The Securities and Exchange Commission] has already issued a cease and desist order against KAPA in February 2019 and an order of revocation of its certification of incorporation in April 2019 after KAPA was found to have been soliciting investments from the public without the necessary license, and that its investment scheme qualifies as a fraud and a Ponzi scheme."
The SEC on Tuesday renewed its warning against investment scams amid what corporate regulators called a "disinformation campaign" by KAPA.
The commission said it took note of “false claims” being spread by KAPA on social media that the group was supposedly poised to secure the necessary licenses to resume its operations.
KAPA stands for Kabus Padatoon, which is Bisaya for "make the poor rich." But authorities warned it will actually not do that.
The SEC explained that KAPA’s activity constituted a “Ponzi” scheme, an investment program that offers impossibly high returns and pays investors out of capital contributed by newly recruited members.
The Court of Appeals — acting on a petition filed by the SEC and the Anti-Money Laundering Council — issued a freeze order on several banks accounts and other assets linked to KAPA.
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