Former state lawmaker guilty of COVID-19 relief fraud, could face years in prison

WICHITA, Kan. (KWCH) - A U.S. District Court jury on Wednesday, Dec. 21, found a former state lawmaker accused of COVID-19 relief fraud guilty on 12 of 19 counts against him. Michael Capps stood trial in federal court on counts of fraud and money laundering.

The jury found Capps, 44, guilty on three counts of making false statements to apply for loans through the Payment Protection Program and the Small Business Association (SBA). Applying for Economic Injury Disaster Loans (EIDL) with the SBA, convictions said Capps lied about the number of employees he had and the revenue brought in through ventures that include Krivacy, LLC, and the Fourth and Long Foundation. He’s also convicted of making a false statement to a bank for a PPP Loan, also lying about employee numbers and incoming revenue.

The jury also found Capps guilty on on count of bank fraud, four counts of wire fraud and four counts of money laundering. The jury acquitted Capps on one count of making a false statement, one count of wire fraud and four counts of money laundering. A sixth count of wire fraud -- in addition to the four convictions and one acquittal -- was dismissed, court records show.

Breaking down the dollar amounts associated with the charges against Capps, the jury convicted him of defrauding federal and state agencies of more than $350,000 in COVID-19 business recovery funds. Capps faces the possibility of several years in prison and hundreds of thousands of dollars in fines. The two steepest penalties are for the false statement to a bank for the PPP loan and the bank fraud charge. Each carry sentences of up to 30 years in prison.