Former Kansas lawmaker charged with fraud of more than $450K COVID relief fraud

A federal grand jury in Wichita on Thursday indicted a former Kansas state representative on charges that he defrauded federal, state, and local agencies of more than $450,000 in COVID-19 business recovery funds.

Kansas state Rep.Michael Capps (R), 43, owner and/or majority owner of Midwest Business Groups, LLC and Krivacy, LLC., also a member of the Fourth and Long Foundation. Capps was indicted on more than a dozen counts of making false and fraudulent documents.

The U.S. attorney’s office in Kansas said in a statement that Capps is accused of defrauding federal, state, and local agencies of more than $450,000 in COVID-19 business recovery funds.

“Michael Capps, 43, of Wichita is the owner and/or majority owner of Midwest Business Groups, LLC and Krivacy, LLC. Court documents also indicate he is a member of the Fourth and Long Foundation. Capps is accused of submitting false and fraudulent documents on behalf of the companies 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, “ the U.S. attorney’s office in Kansas said quoting to court documents.”

Capps also allegedly sent false and fraudulent documents to Emprise Bank to receive a Payroll Protection Program (PPP) loan, said the attorney’s office.

According to the statement, 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, and
•   eight counts of money laundering.

The investigating agencies are the FBI and investigators from the Sedgwick County District Attorney’s Office, said in the statement.

Assistant U.S. Attorney Alan Metzger is prosecuting the case, the Department of Justice’s statement said.

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