KAPA-COMMUNITY MINISTRY INTERNATIONAL, INC.

. CEB19 2010 PICC Secretariat Bldg, Roxas Blvd., Pasay City Securities and Exchange Commission Republic of'the Philippines Department of Finance A 3:25 In the Matter of: INTERNATIONAL, INC. KAPA-COMMUNITY MINISTRY for Issuance of a Cease and Desist Order SEC Admin. Case No. 02-19-181 For: Petition for Revocation with Prayer PROTECTION DEPARTMENT, ENFORCEMENT AND INVESTOR Petitioner. CEASE AND DESIST ORDER issuance of a Cease and Desist Order1 filed by petitioner Enforcement and Investor Protection Department (EIPD) of the Commission. Incorporation of KAPA-COMMUNITY MINISTRY INTERNATIONAL,INC.with prayer for the Before the Commission En Banc is the Petition for Revocation of the Certificate of in accordance with Section 116 of the Corporation Code of the Philippines. by the Commission through its Davao Extension Office on 03 March 2017, with Company Registration No. CN201707724. It is registered as an Independent Religious Corporation INTERNATIONAL, INC.KAPA"for brevity) was issued a Certificate of Incorporation2 Per recordsoftheCommission, KAPA-COMMUNITY MINISTRY The Certificate of Incorporation issued to KAPA explicitly provides: "This Certificate grants juridical personality to the 1 Dated 12 February 2019. 2 Annex "A" of the Petition. s 3P age Y THEX ORD agents thereof. Neither does this Certificate constitute as agencies require a license or permit."(Emphasis supplied). house,transferagent, shares/club shares/membership certificates issuers or selling permit to undertake activities for which other government dealer (GSED), investment adviser of an investment company, close-end or open-end investment company, investment exchange/broker/merchant, financing company, pre-need plan issuer, general agent in pre-need plans and time corporation but does not authorize it to undertake this Commission such as, but not limited to, acting as: broker or dealer in securities, government securities eligible business activities requiring a Secondary License from commodity/financialfutures shows the following entries: A perusal of the Articles of Incorporation (AOI) submitted by KAPA to the SEC (a Caramcam District, Mangagoy, Bislig City, Surigao Del Sur, 8311 Its principal office address is located at Garay Arcade, Barreda Street Philippines; (b) That the number of trustees shall be EIGHT (8); (C) The primary purpose of the corporation is administration of its affairs, properties and temporalities; and The names, nationalities and addresses of its incorporators and trustees are as follows: Name Nationality Residence Ptr.Joel A.Apolinario Filipino Union Site, Mangagoy Bislig City Nonita S. Urbano Filipino P-1 Cumawas, Bislig City Junnie G. Apolinario Filipino P-1 Cumawas,Bislig City Nelia V. Nino Filipino P-2 Calubian Tabon Bislig City Maria Pella B.Sevilla Filipino Sanyat, Sta. Cruz, Bislig City Jouelyn A.Del Castillol Filipino Scaling, San Roque, Bislig City Tpa Cristobal R. Barabad Filipino Espiritu St. Mangagoy, Bislig City Joji A. Jusay Filipino Espiritu St.Mangagoy, Bislig City -- Kabus Padatuon (Enrich the Poor). Notably, the Articles of Incorporation3 of KAPA likewise contained the words: KAPA through the SEC I-Message Mo5 facility that reported fraudulent transactions/activities of KAPPA (Kabus Padatoon) and/or KAPA/Kabus Padutuon founded by a certain Joel Apolinario. The said e-mails are quoted hereunder: According to the Petitioner, sometime in February 2017 it received e-mails4 Apolinario. They were collecting investments and 30% of the money will be back to each and every month until forever as they promised. Their target were mostly Teachers." City Surigao del sur. Kappa (Kabus Padatoon) Founded by Joel "Please investigate Kappa Investment scam here in Bislig -and- "good evening! hundred of thousands just to invest to them. And they also have a receipt who stated there the word "donation". Please do investigate them so that it will stop. invested 15,000 to them and they promised to give it back by 4 months with the monthly interest. I am afraid that it might be a scam or just like what pyramiding business strategy scam that my money will not be return. Sad to say many of the teachers loaned Jun Apolinario who is a teacher who is now convincing lot of teachers here in Bislig City to invest money to them to have an interest of 30% receivable monthly. In line with your advisory dated last February 9, 2017 I am eager to report them for me also Padutuon" founded by Mr. Joel Apolinario and with his broker Mr. I just want to complain about the so called "KAPA""Kabus (expidition) and a house and lot worth 2 million this year only and Mr Jun Apolinario bought a car (MUX) worth 1.5 million cash. XXX. P.s The founder Joel Apolinario has bought already a car 5 j-Message Mo is a web-based online application for lodging of questions, requests, complaints, issues, concerns, 4 Annexes "C" and "C-1" of the Petition. suggestions/opinions, tips/alerts, etc 3 Annex "B" of the Petition O Kappa (Kabus Padatoon) are not registered with the SEC. verification from the SEC I-View on whether or not KAPA and/or KAPPA (Kabus Padutuon) are registered with the Commission and if they have a secondary license to offer or sell securities to the public. It turned out that "KAPA""Kabus Padutuon" and/or Acting on the said e-mails, the EIPD commenced its investigation through an initial activities is being committed, is within the Cagayan De Oro Extension Office's area of responsibility in the prevention, monitoring and investigation of investment scams.7 Office for appropriate action since Surigao del Sur, the place where the alleged fraudulent The EIPD referred the matter to the Commission's Cagayan De Oro Extension Mr. Joel Apolinario is one of its incorporators. registered with the Commission and issued a Certificate of Incorporation on 03 March 2017 through the SEC Davao Extension Office. Its Articles of Incorporation shows that In the meantime, KAPA-COMMUNITY MINISTRY INTERNATIONAL, INC. was investments which require a secondary license as provided under Section 8.1 of the Securities Regulation Code (SRC). Commission as a corporation or partnership and that it has not been authorized to solicit (KABUS PADATOON) informing the public that the said entity is not registered with the On 22 March 2017, an ADVISORY8 was posted on the SEC website against KAPPA in the said Deed was KAPA-COMMUNITY MINISTRY INTERNATIONAL INC., a religious by its Minister/Pastor JOEL A. APOLINARIO. forwarded by the Office of the Chairperson (of the SEC) to the EIPD for investigation. As PADATOON are one and the same because the two have similar "modus" of recruiting and offering "10k for 3k" monthly. Signif(cantly, the attached copy of a blank form of] a Deed of Donation,1 which was provided by the e-mail sender, indicates that the DONEE corporation organized under Philippine laws and registered with the Securities and Exchange Commission under Company Registration No. CN201707724 and represented can be gleaned from the e-mail, the sender suspects that KAPA COMMUNITY and KAPPA On 4 October 2017, a printed copy of an e-mail9 with its attachments was Annex "D" of the Petition. 9 Annex "E" of the Petition 6 The SEC i-View is an online pay-per-use faciity that gives the public the convenience of getting copies of documents Pursuant to SEC Office Order No. 680, Series of 2012. 10 Annex "F" of the Petition (Annual Financial Statement, General Information Sheet, and others) of SEC-registered companies. 4lPagc THRLNE CFRTTIFOTRLECOPYOE TSONRECORD C O PAES INTERNATIONAL, INC. and KAPPA (KABUS PADATOON) haVe not registered any securities and have not been issued permits to offer and sell securities. Department (CGFD) of the Commission, stating that KAPA-COMMUNITY MINISTRY Securities Regulation Department (MSRD) and the Corporate Governance and Finance A few days later, negative Certifications11 were issued by the Markets and alleged investment solicitation activities of KAPA/KAPPA. According to the said emails, the said entity is allegedly engaged in massive recruitment of members to join their religious organization and at the same time, offers an investment scheme with the opportunity to earn huge profits at the rate of 30% interest of the investment monthly. queries, with the same import, were likewise received from the public regarding the Despite the said ADVISORY, various e-mails,12 letters, complaints and phone Extension Office and Cagayan de Oro Extension Office to investigate the activities of KAPPA (KABUS PADATOON) in Bislig City, Surigao Del Sur. The EIPD likewise referred the reports and complaints to the Commission's Davao and (6) Order of Release issued by MTCC, Bislig City by reason of the posting of a bail Attached to the Memorandum are: (1) copies of a "Certificate of Membership with Deed of Donation;" (2) Kapa Policy. and Benefits; (3) NBI Investigation Report; (4) bond by Joel Apolinario. the alleged investment-taking activities of respondent KAPA and one Joel Apolinario. (Bislig City); (5) copies of the 12 warrants of arrest issued against Joel Apolinario, et. al.; Office was received by EIPD which contained pertinent documents that were obtained from the National Bureau of Investigation (NBI), Caraga Regional Office XIII. Said documents were gathered by the NBI Caraga which conducted its own investigation on endorsement of the NBI of its findings [for Estafa] to the Office of the City Prosecutor On 11 September 2018, a Memorandum13 from the Commission's Davao Extension after giving the "Donation," receives or is given a copy of KAPA POLICY AND BENEFITS, which stipulates: Based on the said "Certificate of Membership with Deed of Donation," the member "1. Aron nga mahimong membro sa KAPA, mohatag una siya ug 100 pesos alang sa iyang rnembership. 13 Annexes "I" to "I-39".of the Petition. 11 Annexes "G" and "G-1" of the Petition. 12 Annexes "H" to "H-8" of the Petition. ERHAA 5|pagc EORYO NECOR 2. Kung makahatag kana sa maong kantilad lihitimo kan nga memebro sa KAPA og pwede kanang mo donate bisan pila nga kantidad og motubo kini 30 porcentomatagbulan. 3. Ang maong tubo pwede niya kuhaon matag bulan molaktaw lamang ug us aka adlaw gikan sa petsa sa iyang pagpamembro. mag-compound kini matag bulan kung dili nya kuhaon sulod 4. Ang nasangpit nga donasyon magatubo 30 porcento og sa usa ka tuig." POLICY AND BENEFITS: The following is a translation of the above-quoted contents of the said KAPA 1. To be a member of KAPA, the amount of 100 pesos membership fee must be paid. 2. If you have given the said amount, then you become a legitimate member and that would be the time that you can "donate" in any amount which will earn 30 percent interest per month. his membership plus one day. 3. The said interest shall be received the following month after 4. The amount donated will earn 30 percent compounded interest every month if the member will not withdraw the "donation" for a year. some investors against KAPA, Joel Apolinario y Abaton and many others before the Office of arrest were issued against Joel Apolinario y Abaton. CO has amassed more than Seven Million Pesos from a hundred investors who are mostly residents of Bislig City. It was also gathered that criminal action for Estafa was filed by of the City Prosecutor of Bislig. Criminal cases have also been filed in court and warrants Office forwarding certified true copies of documents furnished by the Bislig City Police Station of the Philippine National Police. Based on the forwarded documents KAPA/KAPA The EIPD further received a Memorandum14 from the Cagayan De Oro Extension KAPA-COMMUNITY MINISTRY INTERNATIONAL, INC. is not a registered issuer of mutual On 28 September 2018, the CGFD issued a Certification15 stating that respondent 15 Annex "K" of the Petition. 14 Annex "]" of the Petition. 6IPage H licensed to offer or sell such securities to the public. funds, exchange traded funds and proprietary/non-proprietary shares or membership certificates and timeshares pursuant to Section 8 and 12 of the SRC and therefore not for registration/permit to sell securities. issued a Permit to Sell Securities in favor of KAPA-COMMUNITY MINISTRY INTERNATIONAL, INC. and that the latter has not filed nor has any pending application pursuant to Sections 8 and 12 of the SRC. Likewise, the MSRD certified that it has not KAPA-COMMUNITY MINISTRY INTERNATIONAL, INC. has not registered any securities On 01 October 2018, the MSRD issued a Certification16 stating that respondent license as provided under Sec. 8.1 of the Securities Regulation Code (SRC). said corporation is not authorized to solicit investments which require a secondary Apolinario; (2) Nonita S. Urbano; (3) Junnie G. Apolinario; (4) Nelia V. Nino; (5) Maria Pella B. Sevilla; (6) Jouelyn A. del Castillo; (7) Cristobal R. Barabad; and (8) Joji A. Jusay. Finally, the Advisory informed the public that based on the records of the Commission, respondent KAPA-COMMUNITY MINISTRY INTERNATIONAL, INC. informing the Registration No. CN 201707724 on 03 March 2017 with office address located at Garay Arcade, Barreda Street, Caramcam District, Bislig City, Surigao del Sur 8311. The Advisory also enumerated the trustees and officers of said corporation, namely: (1) Ptr. Joel A. public that it is registered with the Commission as a non-stock corporation under SEC On 04 October 2018, the Commission issued and posted an Advisory17 against to thirty percent (30%) of the amount of donation.given monthly until withdrawn. 2019.18 In the said reports, the public disclosed that KAPA is promising profits equivalent the SEC i-messages and e-mails, consistently stating that KAPA has intensified its recruitment and solicitation activities through the different social media networks and video sharing websites, including Facebook.and YouTube since January 2018 to January Meanwhile, the EIPD continuously received various reports from the public through operating in various areas in Mindanao under the following names: In the course of its investigation, the EIPD further discovered that KAPA is b C. a KAPA/KAPPA (KABUS PADUTOON); KAPA KABUS PANDATUON (ENRICH THE POOR); KAPA COMMUNITY MINISTRY INTERNATIONAL, INC.; KAPA-CO CONVENIENCE STORE AND GENERAL MERCHANDISE; and 16Annex "L" of the Petition. 18 Annex "N" of the Petition. 17 Annex "M" of the Petition LPag A e. KAPA WORLDWIDE MINISTRY. in some video presentations posted and accessible on popular websites. found that KAPA/KAPPA and/or through its company President Joel Apolinario is featured Upon verification by the EIPD investigators on the various internet websites, they KAPA and invite prospective investors who may be lured by the promise of huge returns. individual is being shown talking excessively about KAPA, which video is intended to endorse, promote and disseminate information about the investment scheme offered by Among the said video is the YouTube presentation of KAPA where a solitary male when he introduced himself during his interview on the ABS-CBN Teleradyo program.19 featured in the earlier mentioned YouTube video was identified as Mr. Joel Apolinario Subsequently, EIPD investigators viewed another video where the male person thereof was executed by the investigators of EIPD. and invitation to the public to invest with the company. A Joint-Affidavit2 attesting as to how the said YouTube presentations were obtained from the internet and the contents of Facebook videos that generate the same topic about the investment scheme of KAPA Aside from the said YouTube videos, Mr. Joel Apolinario is also featured in a series Surigao City, Surigao del Norte and Bayugan City, Agusan del Sur, on 4 October 2018 and 5 October 2015. Renato V. Egypto of the Commission's Cagayan De Oro Extension Office with attached affidavits of its personnel who conducted an investigation of the activities of KAPA in On 10 October 2018, the Petitioner EIPD received a Memorandum21 from Director In the said 10 October 2018 Memorandum, Director Egypto stated: of the Securities Regulation Code (RA 8799), to wit: following facts that blatantly violated the provisions of Section 8.1 "In the course of our investigation, we uncovered the That Kapa's.unauthorized operation in Brgy. San Juan, Paorco, who are also donors/investors, unequivocally alleged that transactions in Kapa office are limited to Surigao City has been commonplace. The guards on duty, Mr.Fernando B. Paorco and Mr. Bonifacio B. 20Annex "O" of the Petition. 21Annex "p" of the Petition. 19 https://www.youtube.com/watch?v=jnHgJOD-PtA&t=351s 8agc F. CORD some.of . themaregovernmentemployeeswho releasing of the monthly token/income office in Brgy. San Juan, Surigao City. Regrettably, embraced the supposed opportunity offered by Kappa; or existing donors/investors. They further alleged that kapa's monthly token is 30% of any donation. Our investigation shows that per observation even in a span of one (1) hour, there were more than twenty (20) donors/investors who made transactions at the Kapa donors/investors and accepting of donation from new That Kapa's unauthorized operation in Purok 5, Even the vice-mayor of that City was allegedly been there to collect his monthly token/income. months. Another donor, Mr. Jimmy A. Arro, who held the 47th priority number, came to that office to make additional donations and, accordingly, he has been enjoying the monthly token/income for several months. were forty eight (48) donors/investors who entered therein and some of them were still waiting for their turn to be served. Mr. Juan I. Magdua, donor/investor, claimed that he has been receiving the monthly token/income from that office for the last two (2) Taglatawan, Bayugan city is typically done at the office of Kapa. On 5 October 2018, Mr. Radaza, when he went inside the premises of kappa, he discovered that there Brgy. San Juan, Surigao City on 4 October 2018: Commission's Cagayan de Oro Extension Office dated 11 October 2018, he made the following statements on the activities of KAPA at its office located at Purok 8, Navalca In paragraphs 5 and 7 of the Affidavit executed by Mr. Jesher M. Radaza of the 15. That Mr. Fernando Paorco, also an investor/donor, asserts Gratitude" (Token) '(30% of the amount donated representing interest/income/gift per month) and those who have actual money on hand of at least P5,000 can enter the that it is the policy of their office "No ID, No Entry." He further said, that only members claiming their "Token of premises. XXX I. That Mr. Bonifacio B. Pabrco; the guard who secured the exit, averred the following: 1) he is an investor of Kapa P200,000); 2) the rate of return is 30% of your donation, receiving a monthly token/income of P60,000 (30% of 9Pag 0 token/income and/or making additional or initial donation. Only these two transactions are done in the Kapa office and no other percentage is given by kappa; and 3) all persons inside the Kapa office are claiming their monthly nothing else." he conducted at the office of respondent KAPA at Purok 5, Taglatawan, Bayugan City on 5 October 2018 contains similar statements of investments and payouts by KAPA. The Affidavit executed by Mr. Radaza narrating the incidents of the surveillance for Mindanao, BomboRadyo Philippines, addressed to Commissioner Javey Paul D. Francisco was received by the Commission reporting the activities of "KabusPadatuon (KAPA). In said letter Mr. Collado stated, among others: On 22 October 2018, a letter22of the same date from Ricky Collado, Area Manager their hard earned money,,savings, sale. of..cattle and properties to this. pyramiding scam propagated investors in Bislig City that are now crying foul after losing BomboRadyoButuan the cases filed by hurdreds of "kabusPadatuon"(KAPA), led by a certain Mr. Joel Apolinario. Gensan, now based in the Bombo Mindanao Area Office in Davao City. We, at BomboRadyo Philippines, as a member of the. "I am writing to you Sir as fellow Mindanaoan from fourth estate, having received from by Oriental and Digos, Davao Del Sur. Church Ministry) are now enticing investors with 30% monthly interest in Alabel, Sarangani, General Santos City, Korondal City and have opened offices as far as Cateel, Davao From Bislig City, the same group (disguising as a celebrated pyramiding schemes in Metro Manila and other repeatedly warning people. (using SEC Advisory) against places in the country. greed-driven investment that they will loose when the Ponsi- by Type pyramiding scam implodes, as in this case of so many BomboRadyo General Santos & BomboKoronadal These, despite the SEC Advisory and all out campaign for KAPA from receiving any and all investments in the guise issuance by SEC Manila of a Cease and Desist Order(CDO) I hope that these attached references can hasten the 22Annex "Q" of the Petition. IhD CERTIE o 10age PYOr PECORD PNCES of donations as a "Church Ministry" so that the LGU and other Law Enforcement Agencies can now move to close down offices and order the return of the money. EIPD, we find sufficient basis to grant the prayer for issuance of a Cease and Desist Order. After careful evaluation of the allegations.and the evidence presented by Petitioner of investment contracts without the necessary license from the Commission. and its allied entities are engaged in offering or selling to the public securities in the form The EIPD has adduced substantial evidence to support the allegation that KAPA be (1) an investment of money; (2) in a common.enterprise; (3) with expectation of transaction, contract, or scheme whereby a person: (1) makes an investment of money; solely from the efforts of others.23 . This definition has been adopted by the Supreme jurisdiction, to be a security subject to regulation by the Commission, must be proved to profits; and (4) primarily from efforts of others.24 (2) in a common enterprise; (3) with the expectation of profits; and (4) to be derived Court of the Philippines which succinctly stated that an investment contract in our In a plethora of cases, it has been stated that an "investment contract" is a scheme of respondent KAPA. albeit. denominated as a "Donation," is actually an investment contract because of its essential features, as follows: of respondent KAPA falls within the ambit of an investment contract. The investment As aptly elucidated by the EIPD, it was able to show that the investment scheme (1) The member-investor enters into a contract. There is a placement of Commission, the members-investors were promised thirty percent money where for a certain sum as stated in the emails received by the (30%) .interest per. month for life on their investment or so-called Donation. (2) The money invested is placed in a common enterprise and the investor-member expects to derive profits. (3 Finally, the member-investor expects to earn profits from the 23 Securities and Exchange Commission v. W.J. Howey Co, 328 U.S. 293, 66 S. Ct. 1100, 90 L.Ed. 1224, 163 A.L.R. 24 Power Homes Unlimited Corporation v. Securities and Exchange Commission, G.R. No. 164182, February 26, 2008. 1043 (1946) 11[Pag DNO i. the monthly profits promised to them. The member-investors just have to invest money. entrepreneurial and managerial efforts of others. The member investor need not do anything but go to the office of KAPA and receive from Bislig City were lured to invest sums of money in consideration for the promise of huge profits and lifetime income from KAPA. The above illustration is further proven by the fact that the members-investors the provisions of Section 8.1 of the SRC should be complied with before said securities could be offered or sold to the public. Having established that the investment scheme of KAPA is an investment contract, Commission. public sans the necessary license or permit as attested by the MSRD and CGFD of this Thus, KAPA has engaged itself in offering or selling such securities to the general exemplified in the case of People of the Philippines vs. Palmy Tibayan and Rico Z. Puerto (G.R. Nos. 209655-60, January 14, 2015), where the Supreme Court held that: as it promises an exorbitant rate of return with little or no risk at all to investors as Worse, the investment scheme of KAPA has the characteristics of a Ponzi scheme shows up to collect, Necessarily, Ponzi schemes only last the "con-man" collects his money from his second or third round of investors and then absconds before anyone else investment strategy but a gullibility scheme, which works only long period of time because the operator needs an ever larger pool of later investors to continue paying the promised profits to early investors. The idea behind this type of swindle is that as long as there is an ever increasing number of new investors joining the scheme. It is difficult to sustain the scheme over a the perpetrators focus on attracting new.money to create the false appearance that investors are profiting from a legitimate business. It is not an fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. high returns with little or no risk, In many Ponzi schemes, make promised payments to earlier-stage investors to Its oraanizers often solicit new investors by promisina to invest funds in opportunities claimed to generate "To be sure, a Ponzi scheme is a type of investment 12 Pagc S ( S emphasis) weeks, or months at the most." (Underscoring added for random offering online25 via videos promoting its investment scheme to potential would apply, to wit: KAPA is engaged in offering for sale securities to the public through indiscriminate or investors without prior registration. Thus, Section 64 of the Securities Regulation Code The petitioner EIPD adduced sufficient evidence to support its allegations that investing public. prior hearing if in its judgment the act or practice, unless likely to cause grave or irreparable injury or prejudice to the restrained, will operate as a fraud on investors or is otherwise proprio, or upon verified complaint by any aggrieved party, may issue a cease and desist order without the necessity of a Commission, after proper investigation or verification, motu SEC. 64. Cease and Desist Order. - 64.1. The cause grave or irreparable injury or.prejudice to the investing public.26 it is necessary that a Cease and Desist Order be issued to enjoin KAPA from further offering and selling unregistered securities to the public. Otherwise, to allow KAPA to without the necessary license or permit will operate as a fraud on investors or is likely to continue soliciting investments and/or selling or offering for sale securities to the public The Commission is duty-bound to protect the interest of the investing public. Thus, ITS ALLIED ENTITIES AND/OR Mr. JOEL APOLINARIO, HIS AGENTS OR Hence, the selling or offering for sale of securities by the respondents KAPA AND illegal act. or prejudice to the investing public. Likewise, it is imperative that a Cease and Desist Order be issued as the continued public offering and sale of such securities without the required license from the Commission makes the public offering and selling a continuing REPRESENTATIVES should be immediately restrained to prevent any further grave injury INTERNATIONAL, INC., KAPA KABUS PADATUON (ENRICH THE POOR), KAPA/KAPPA (KABUS PADUTOON) KAPA-CO CONVENIENCE STORE AND WHEREFORE,. premises COnsidered, KAPA COMMUNITY MINISTRY 25 Under Rule 3.1.17.4 of the 2015 SRC Rules, any offering, solicitation and presentation of securities for sale to the public through information communication. technology, such as internet, shall be. presumed to be a public offering. 26 In the matter of Boracay Transpacific Properties Inc.& Paradisya Land Inc., SEC CDO Case No. 07-14-01 February 26, 2015. PAGO THEDOCUANTS ON RECORD CERTIFHED TRUE COPY OF SEC 13TPag OGG PAGES D aSsigns and ANY AND ALL PERSONS CLAIMING AND ACTING FOR AND IN THEIR BEHALF CONTEMPT, from engaging in activities of selling and/or offering for sale securities in the form of investment contracts in the guise of a donation or any other forms of the same nature, as discussed above. are hereby ordered to IMMEDIATELY CEASE AND`DESIST UNDER PAIN OF APOLINARIO, their partners, officers, directors, agents, representatives, conduits, GENERAL MERCHANDISE, KAPA WORLDWIDE MINISTRY, and/or Mr. JOEL immediately the promotional presentation of such investment scheme from the websites. promoting its investment scheme through the internet and/or delete or remove Furthermore, the subject entities and individuals are directed to CEASE from representatives, or any person/s acting for and in their behalf, and such other persons salesmen and agents, are all ENJOINED from a) transacting any and all business involving of this Order, until further orders from this Commission. directing or controlling the activities of such corporation, officers, representatives, the funds in its depository banks, and b) from transferring, disposing or conveying in any other manner any and all assets, properties, real or personal, and including bank deposits, if any, of which the named persons herein may have any interest, claim or participation whatsoever, whether directly or indirectly,under theircustody, immediately upon receipt the preservation of the assets for the benefit of the investors, respondents or any of their Moreover, to forestall grave damage and prejudice to all concerned and to ensure serve this Order to KAPA COMMUNITY MINISTRY INTERNATIONAL, INC.; its President KAPA COMMUNITY MINISTRY INTERNATIONAL, INC. General Manager, Corporate Secretary, Treasurer, In-House Counsel or partners; and 2) post copies of the Order at the entrance of the main office and/or branches, if any, of The Enforcement and Investor Protection Department is hereby directed to: (1) a national newspaper of general circulation and furnished to the Company Registration Economic Research and Information Department for their information and appropriate and Monitoring Department, the Corporate Governance and Finance Department and the action. Let a copy of this Order be also posted in the Commission's website, published in Desist Order. pleading, to the Comimission En Banc within five (5) days from receipt of this Cease and The EIPD is further directed to submit a formal compliance report, by way of a 3 ( HE CERIUHSRFOPYOE REORD s PAGES may file a request for the lifting thereof within five (5) days from receipt hereof. Rules of Procedure of the Commission, the parties subject of this Cease and Desist Order In accordance with the provisions of Sec. 64.3 of SRC and Sec. 4-3 of the 2016 FAIL NOT UNDER PENALTY OF LAW. SO ORDERED Pasay City, Philippines, 14 February 2019. EMIL AQUINO Sh erson ANTONIETA F.IBE Commissioner taio Me Commissioner NLE ESTERK.LEE EPHYRO LUIS B. AMATONG * Commissioner JAVEY PAUL D. FRANCISCO Commissioner *On Official Business OPYO GDU CES