Former Kansas representative indicted on 19 counts of COVID relief fraud
WICHITA, Kan. (KWCH) - A federal grand jury in Wichita indicted a former Kansas representative on charges of defrauding federal, state, and local agencies of more than $450,000 in COVID-19 business recovery funds.
According to court documents, Michael R. Capps, 43, is the owner and/or majority owner of Midwest Business Groups, LLC and Krivacy, LLC and a member of the Fourth and Long Foundation.
The indictment alleges Capps submitted false and fraudulent documents on behalf of the two companies and foundation to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL), as well as to the Kansas Department of Commerce for Small Business Working Capital grants, and to Sedgwick County for a Sedgwick County Cares grant. He is also accused of sending false and fraudulent documents to Emprise Bank to receive a Payroll Protection Program (PPP) loan.
The indictment filed against Capps charges him with:
- one count of making false statement to a bank for a PPP loan, • one count of bank fraud in connection with a PPP loan
- three counts of false statement to the SBA for EIDL loans
- three counts of wire fraud in connection with EIDL loans from the SBA
- two counts of wire fraud in connection with grants from the Kansas Department of Commerce
- one count of wire fraud in connection with a grant from Sedgwick County
- eight counts of money laundering.
FBI and investigators from the Sedgwick County District Attorney’s Office investigated the case.
Capps is set to make an initial appearance set for Sept. 22 at 1:30 p.m.
Copyright 2021 KWCH. All rights reserved.