The story of the Kapa Community Ministry International Inc. (KAPA) is a chilling example of how religious fervor and desperation can be leveraged into one of the largest financial fraud schemes in Philippine history.

Joel Apolinario, the founder of KAPA, came from impoverished beginnings in Surigao del Sur.

After losing his mother young and being unable to rely on his father, he worked tirelessly as a fisherman and construction worker, eventually finding a stable job as a DJ and radio technician.

Witnessing the desperation of his impoverished neighbors, many of whom resorted to crime for money, Apolinario became a self-styled pastor.

He resolved that to genuinely help the poor, he needed a means of financial elevation outside of government, having failed in two attempts to run for public office.

In 2016, using donations, he founded KA Convenience Store and General Merchandise, later rebranding it as KAPA Community Ministry International Inc., framing its purpose around faith and financial freedom—”Pagyamanin ang Mahihirap” (to enrich the poor).

The core of KAPA’s model was its promise: members would give a “donation” (as low as PHP 10,000) to the cooperative. In return, they would receive a “love gift” of 30% of their principal amount monthly, indefinitely.

This promise of “passive income” with an astounding 30% monthly return was the lure.

Apolinario boasted that KAPA’s returns were sustained by profitable ventures in mining, farming, fisheries, gasoline stations, and convenience stores, claiming some businesses earned billions annually.

He quickly relocated to General Santos City to manage the explosion in membership, which ballooned to an estimated 5 million people nationwide.

The organization’s success was its downfall. The Securities and Exchange Commission (SEC) launched an investigation, quickly identifying KAPA as a classic Ponzi scheme—illegal because it generated returns not from actual investments, but from the funds of new members.

The SEC pointed out that no bank or legitimate investment firm in the world could promise a guaranteed 30% monthly return.

Furthermore, KAPA’s lack of written contracts for the 30% return ensured that when the scheme collapsed, members would have no legal recourse.

The SEC argued that Apolinario expertly manipulated the faith and financial illiteracy of the poor to achieve staggering collections, estimated at up to PHP 50 billion in total.

In June 2019, after the SEC issued a cease-and-desist order, President Rodrigo Duterte publicly intervened, urging Filipinos to stop joining KAPA and declaring the ministry illegal.

The government began filing criminal charges of large-scale syndicated estafa (fraud) against Apolinario and his co-officials.

The backlash from KAPA members was swift and loud. Millions rallied, passionately defending Apolinario and demanding the government allow their operations to continue, believing they were victims of political persecution or a banking conspiracy.

Apolinario and his top officials went into hiding before arrest warrants could be served. They evaded authorities for over a year.

The manhunt ended dramatically on July 21, 2020, when a combined force of the PNP and Philippine Coast Guard located Apolinario and 23 of his armed companions in Lingig, Surigao del Sur.

The encounter involved an exchange of fire, resulting in the loss of life of one of Apolinario’s companions. Authorities recovered over 40 firearms and grenades, confirming their belief that Apolinario would not surrender peacefully.

The subsequent trial focused on the victims’ losses and the fraudulent nature of the 30% promise.

On December 2, 2023, the Butuan City Regional Trial Court found Joel Apolinario and his associates guilty beyond reasonable doubt on eight counts of syndicated estafa.

Apolinario was sentenced to life imprisonment and ordered to pay back victims’ funds.

The conviction confirmed that KAPA’s immense growth was built on a foundation of faith and lies, leaving millions of Filipinos who were desperately seeking financial freedom to cope with profound financial loss.