was found to have been soliciting investments from the public without the

Was found to have been soliciting investments from

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of the Securities Regulation Code. was found to have been soliciting investments from the public without the necessary license , when it enticed the public to “donate” in exchange for monthly “blessings” equivalent to 30% of their donation for life. resembles a Ponzi scheme and also qualifies as affinity fraud
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Republic act No. 8799, or the Securities Regulation Code investment contracts are securities, defined as shares, participation or interests in a corporation or in a commercial enterprise or profit- making venture and evidenced by a certificate, contract, instrument, whether written or electronic in character. KAPA’S SCHEME IS AN INVESTMENT CONTRACT
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A Ponzi Scheme is an investment program that offers impossibly high returns and pays these returns to early investors out of the capital contributed by later investors. In KAPA, members are enticed to make “donations” with a promise of “blessings” equivalent to 30% of their donations to be paid out every month and for life. Yet, KAPA does not have any concrete and stable business or source of income. KAPA’S SCHEME IS A PONZI SCHEME
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In the case of KAPA, founder and president Joel A. Apolinario exploits his position and influence as pastor of a religious ministry to dupe members in investing their hard-earned money in KAPA in the guise of a donation. KAPA’S SCHEME IS AN AFFINITY FRAUD
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In offering and selling securities, KAPA committed an ultra vires act, exceeding the privilege granted to it and misrepresenting itself to the public by concealing its investment scheme in the guise of a donation to entice the public to donating when in truth and in fact they are investing.
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  • Fall '15
  • precy wata
  • Collective investment scheme, Ponzi scheme, KAPA

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