SEC-10 warns of new investment scammer

By LITO RULONA
Correspondent .

WHILE it has yet to prosecute the people behind the Ploutos scam, the Securities and Exchange Commission-10 has named another investment scam operating illegally in Northern Mindanao.

SEC-10 regional director Atty. Renato Egypto warned the public not to invest with the organization named Kappa (Kabus Padatoon), during an Investor Information Seminar held at the Capitol University, recently.

Kappa is the same entity who reportedly filed a complaint before the National Bureau of Investigation (NBI) and the arrest of the manager and news director of Bombo Radyo-General Santos in an entrapment operation last week for alleged extortion.

Egypto said Kappa is founded by a certain Joel Apolinario. It is operating in Bislig City, Surigao del Sur and collecting investments from the public with a promise of 30% increase of one’s investment every month for perpetuity.

Reports reaching to SEC-10 office said Kappa is expanding its recruitment operation to several municipalities and cities in Misamis Oriental including the cities of Gingoog, El Salvador, and Cagayan de Oro.

“The public is hereby informed that Kappa (Kabus Padatoon) is not registered with the Commission as a corporation or partnership. There being no primary license, it is not authorized to solicit investments which require a secondary license as provided under Sec. 8.1 of the Securities Regulation Code,” the SEC advisory reads in part.

The law likewise prohibits any person from engaging in the buying or selling of securities in the Philippines as a broker or dealer as salesman or associated person of a broker or dealer unless registered as such with the Commission (Section 28, SRC).

Accordingly, those who invite or recruit or convince people to join or invest in the venture or offer investment contracts or securities to the public may be charged and held criminally liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs. Oudine Santos [G.R. No. 195542, March 19, 2014].

Egypto said if somebody has invested money or are invited to invest in Kappa, you may seek the assistance of the SEC – Extension Office of the Securities and Exchange Commission with office address at SEC Building, corner 14th and Tomasaco-Del Lara Sts., this city or may call telephone number (088) 857-4325 and (088) 857-7225.

Lawyer Jose Aquino, SEC director for external investment protection department simply commented that any invitation for investment who promises to give 30% every month for perpetuity is a dead give away.

“Kana lang daan nga 30 percent until forever is klaro nga bakak. Kappa is operating illegally,” he said.