The Court of Appeals (CA) has junked an appeal by officers and agents of Kapa-Community Ministry International, Inc. (KAPA) seeking the reversal of the court’s decision issued last March which declared valid the 20 search warrants issued by a Manila trial court allowing the National Bureau of Investigation (NBI) to collect evidence in connection with the group’s alleged involvement in P50-billion Ponzi investment scheme.
In a three-page resolution, the CA’s 13th division did not give merit to the grounds raised by KAPA in its motion for reconsideration filed last May 12, 2023.
KAPA asserted that the Supreme Court did not authorize the Regional Trial Court of Manila Branch 20 to issue and implement the questioned search warrants outside of its jurisdiction.
KAPA argued that the search warrants were implemented in violation of the Rules on the Use of Body-Worn Cameras in the Execution of Warrants issued by the SC.
The petitioner further claimed that the search warrants were issued based on “doubtful, hearsay, and inconsistent testimonies and documents which were not thoroughly validated and authenticated,” thus, evidence obtained in the implementation of the said search warrants must be suppressed and declared inadmissible in any proceedings.
But the appellate court ruled that the Rules on the Use of Body-Worn Cameras in the Execution of Warrants which was issued on June 29, 2021, was applicable to pending and unimplemented warrants.
“At the time of the issuance of the subject search warrants, this administrative matter was not yet promulgated or effective,” the CA ruled.
“As the other arguments submitted by petitioner, the Court finds them exactly the same as the arguments and issues that have already been passed upon and settled in the decision dated March 27, 2023 being sought to be considered,” it said.
In its March 27, ruling, the CA junked the petition filed by KAPA through its representative Pastor Joel Apolinario seeking to quash the subject search warrants.
KAPA elevated the issue before the CA after the trial court denied its petition and motion for reconsideration in 2019 seeking to quash and recall of the search warrants, and to suppress the evidence seized through the said warrants.
The search warrants issued by the Manila RTC Branch 20 covers KAPA’s offices in Quezon City, Sarangani Province, General Santos City, Taytay, Rizal, Compostela, among others, where the alleged illegal investment scheme was being conducted.
The NBI sought the issuance of the search warrants in connection with a complaint filed by the Securities and Exchange Commission (SEC) in 2019 against KAPA for violation of Sections 8 and 26, in relation to Section 73, of the Securities Regulation Code and eight counts of syndicated estafa as defined and penalized in Presidential Decree 1689.
Section 8 of the SRC states that “no person shall engaged in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered with the SEC.”
The complaint was filed on behalf of three investors of KAPA who claimed that they were duped by its officers into investing their hard earned money with guaranteed high returns.
Petitioner’s illegal activities revolve around the scheme of soliciting money, in the guise of investment, from the public with a promise of 30 percent return or interest per month.
Based on the records of the SEC, KAPA has no license or permit to sell or offer for sale, or distribution of securities within the Philippines as certified to by the SEC’s Markets and Securities Regulation Department (MSRD), the Corporate Governance and Finance Department (CGFD) and the Company Registration and Monitoring Department (CRMD).
With regard to the crime of syndicated estafa, the NBI said this was proven when an NBI team went to KAPA offices to investigate and conduct case build-up, and personally witnessed the pyramiding activities of KAPA.
It recounted that the team composed of NBI agents even invested money to KAPA offices as poseur investors just to verify its illegal activities.
Petitioner’s illegal activities revolve around the scheme of soliciting money, in the guise of investment, from the public with a promise of 30 percent return or interest per month.
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