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A study on the financial status of the investors
before and after investing on
Kapa-Community Ministry International, Inc
(KAPA)
and the shutdown of KAPA ministry
Mike Andersen
Yen Escalona
Stana marish Kiana Lobete
INTRODUCTION
Background of the Study

KAPA and Joel A. Apolinario, the co-founder,

promised 30% return of investments and
“donations”
However, The Security and Exchange
Commission (SEC) made a statement that
KAPA is a Ponzi scheme and a fraud

Thus, The Philippine president ordered the

shutdown of the KAPA ministry. The SEC and
the Philippine Justice Department could not
guarantee the return of the money invested.

The study will focus on the status of the

investors before and after investing in KAPA
and the shutdown of KAPA.
INTRODUCTION
STATEMENT OF THE PROBLEM
• What was their previous financial status?

• What was the impact of the investments in

KAPA to the investors/respondents?

• What is their current financial status?

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 INTRODUCTION
SIGNIFICANCE OF THE STUDY
• Informed action on the situation and effective ways to address the said
situation by the government and other bodies.

• Information of the effect and impact of the KAPA ministry and other similar
investments.
• The study will bring more knowledge and information on financial frauds.

• The study could inform the public and the future generations on such
schemes and economic and financial decision makings.Lorem ipsum dolor sit amet,
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 INTRODUCTION
SCOPE AND LIMITATION
The locations of the respondents who agreed
to be interviewed but desire to remain
anonymous due to their right to privacy:
• Butuan city,
• province of Aras-Asan or cagwait
• Tandag city
The respondents will only be people who
invested in KAPA.
The researchers will only study on the effects of
the investments in KAPA and the financial status
before and after the investment and shutdown
of KAPA.
 INTRODUCTION
Review Related Literature
In a briefer on KAPA by the Philippine SEC (2019) , it was stated that
KAPA is only registered as a religious organization. They also showed
several evidences that the KAPA investment is a Ponzi Scheme as well
as other facts and its violations.
In an article in Biography (2019) , a similar scheme to KAPA was
conducted by Bernard Madoff is known to be the founder or the
head chief of the biggest financial fraud in history. According to his
prosecutor, $170 billion was moved to his account before the united
states securities and exchange commission apprehended him.
Bernard Madoff was able to conduct this scheme for 17 years.
Numerous investors lost their funds and money invested and their lives
were severely impacted.
The Briefer
THEORITICAL FRAMEWORK
Prospect theory
Prospect theory states that decision-making
depends on choosing among options that
may themselves rest on biased judgments. It
was developed by psychologists Daniel
Kahneman and Amos Tversky and originally
published in 1979 in Econometrica. Cognitive Finance theory
According to Nick Chater and David R.
Shanks of the University College London, the
Theory of Behavioral Finance behavioral thought or mental action that
attract the attention of numerous people to
According to Alistair Byrne and Mike Brooks, a popular object or entity such as a popular
(2008) this studies the influence of brand or in this case, a popular investment.
psychology on the behavior of investors or
financial analysts. It focuses on the
argument that investors are not always
rational, and are influenced by their own
biases and other psychological factors such
as desperation.
DIAGRAM OF THE CONCEPTUAL FRAMEWORK

INDEPENDENT VARIABLE

PARTICIPANT
Guide Questions ;
Consist of question
about their lives that how
KAPA affected their lives;
• Financial status before
KAPA DEPENDENT VARIABLE
• Reasons
Data and information
• Aftermath/current
status
• Impact of KAPA in their Analysis/interpret data
lives
 Methods and Procedures
Research Design
The study will utilize a historical design to gather data on the previous
financial status and the current status of the respondents.
It will also investigate the impact of the investments on the respondents’
lives.
 Methods and Procedures
Sampling Technique

The researchers used a purposive sampling technique since

the subjects need to be investors or donors to KAPA to fulfill
the purpose of the study.

The proponents will only gather data from a maximum of

twelve (12) respondents who have invested or donated to
KAPA.
 Methods and procedures
Research Instruments
Interview Guide Questions:
1. What was your financial status before you
invested in KAPA?

2. What is your financial status now?

3. How did the shutdown of KAPA affect you?

4. How did your investments into KAPA affect you?

 Methods and procedures
Data Gathering Procedures and Analysis

The researchers will conduct interviews with the

respondents following the guide questions
created. The researchers will interact with the
respondents with their consent and will inquire on
the impacts of the investments and shutdown of
KAPA to the respondents

The Content Analysis technique will

be utilized to categorized and
simplified to relevant data.

(Andrevski et al., 2012)

 Reference
Security and exchange of the Philippins, (2019) Briefer on KAPA
Retrieved from:
https://www.sec.gov.ph/wp-content/uploads/2019/06/2019Briefer-on-KAPA-As-of-
06102019.pdf

Rose Mc Dermott, (2019) Prospect Theory: Economics

Retrieved from:
https://www.britannica.com/topic/prospect-theory

U.S Securities and Exchange Commission, (2019) Ponzi Scheme: Protect your investments
Retrieved From: https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-
scheme

Xave Gregorio, (2019) Gov’t can’t gurantee return of KAPA members’ money
Retrieved from:
https://cnnphilippines.com/news/2019/6/20/KAPA-members-refund-
donation.html?fbclid=IwAR3t173KVBcvFRA9LjpktMZ1uWzAMlekFd5UjIPLWty1f1JZbcQSMAQsz
 Reference
Philipp Erik Otto, (2007) Cognitive Finance: Behavioural Strategies of Spending, Saving, and
Investing
Retrieved from:
https://pdfs.semanticscholar.org/e3ca/fff4402b17828d196b8c2c5daee1303cf895.pdf

C. Thomas Howard, (2015) Behavioral Portfolio Management

Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2210032

Jun 21, 2019 - Uploaded by GMA Public Affairs

Aired (June 16, 2019): Layunin sana ng Kapa Community Ministry International Inc.

Ralf Rivas Published 8:19 PM, June 11, 2019 Updated 8:37 PM, June 11, 2019
Retrieved : https://www.rappler.com/newsbreak/iq/232805-explanation-how-kapa-community-
ministry-took-advantage-investors

Arra B. Francia (August 28, 2019) SEC says Kapa-Community has not applied for secondary
license
Retrieved from; https://www.bworldonline.com/sec-says-kapa-community-has-not-applied-for-
secondary-license/
Reference
April Hansson

www.proseware.com

Thank you