POLICE in coordination with the local government recently moved to close permanently a company in Compostela, Cebu which is believed to have duped more than 10,000 people into investing in their multi-million peso pyramiding scam, Police Regional Office 7 director, Brigadier General Debold M. Sinas said yesterday.
The official said that last May 29, the Compostela Municipal Police Station aired their concern over the fraudulent activities of the KAPA Company to the mayor’s office amid findings that it was operating without any mayor’s and municipal business permits.
Sinas said that the following day, the Compostela town mayor issued a cease and desist order to the KAPA management and ordered his men to put a ‘notice of closure’ at the entrance.
However, the local police monitored that shortly after the municipal hall employees left the premises, the KAPA management removed the closure order and resumed its operation.
This prompted the local mayor to file criminal charges against the KAPA management led by one Benju Barreto.
Sinas said that the local police is closely coordinating with the mayor’s office for the final closure of the establishment.
According to the Central Visayas police director, the KAPA Company is believed to have recruited more than 10,000 investors, mostly employees of different government and private offices in Compostela and its nearby towns since it began its operations three weeks ago.
Sinas said that personnel from the Bureau of Jail Management and Penology and the Bureau of Fire Protection were likewise monitored to have entered the establishment and were believed to have made investments.
“I have warned all PRO7 personnel to be wary of this scam and have directed them not to make business with the same company in any way. At present, our intelligence agents are also monitoring if there are policemen engaged in the said pyramiding scam,” the official added.