An estimated five million people were duped by the religious company Kapa-Community Ministry International, which promised a 30% monthly return on investments for life.
[1][2] The founder of Kapa, Joel Apolinario, formerly worked as a DJ and technician at a radio station in Bislig, Surigao del Sur, for ten years.
[3][4] According to members of Kapa, Apolinario is a native from Hinatuan, Surigao del Sur, where he lived as a fisherman and a construction worker in his early life.
When numerous people began donating, Apolinario resigned from his position at a radio station and rented a small space at a feeds store,[clarification needed] where he resumed his business.
[4] In September 2016, he obtained a business permit from the local government of Bislig to establish a company named "Kapa-Co Convenience Store and General Merchandise".
[6] The Securities and Exchange Commission (SEC) filed criminal charges against Kapa-Community Ministry International and its executives, citing an investment scam.
[7][8] President Rodrigo Duterte was the first government official to announce the legal actions, doing so on June 8, 2019, when he ordered the National Bureau of Investigation (NBI) to shut down Kapa.
The SEC cited public records that showed at least nine luxury cars, other sports utility vehicles, and still other properties were registered under Kapa and its executives.
[16] On June 21, a video message posted by Apolinario stated that "he also asked the government to help Kapa return the money to its members" after the Anti-Money Laundering Council (AMLC) froze the company's accounts.
[18] On July 21, 2020, after more than six months of hiding, Apolinario and 23 of his companions were arrested by the police on an island in Lingig, Surigao del Sur after a shootout in which two of his bodyguards were killed.
[22] On December 12, 2023, Butuan RTC Branch 33 convicted Apolinario and incorporators Cristobal Baradad and Joji Jusay of eight counts of syndicated estafa in relation to their Ponzi (investment) scheme; sentencing them to life imprisonment; and ordering them as well to pay ₱195,000 in damages to the complainants.
[25] In August 2024, the 7th Municipal Circuit Trial Court Liloan-Compostela, Cebu convicted Apolinario and KAPA’s Christopher D. Abad of estafa under Article 315, paragraph 2(a), Revised Penal Code.