A Former Kansas State Representative has been indicted by a federal grand jury on charges he defrauded federal, state and local agencies of more than $450,000 in COVID-19 business recovery funds.
According to the U.S. Department of Justice, a federal grand jury in Wichita indicted 43-year-old Michael Capps on 19 charges.
According to court documents Capps 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.
Capps also allegedly sent false and fraudulent documents to Emprise Bank to receive a Payroll Protection Program (PPP) loan.
The indictment filed against Capps charges him with:
- 1 count of making false statement to a bank for a PPP loan
- 1 count of bank fraud in connection with a PPP loan
- 3 counts of false statement to the SBA for EIDL loans
- 3 counts of wire fraud in connection with EIDL loans from the SBA
- 2 counts of wire fraud in connection with grants from the Kansas Department of Commerce
- 1 count of wire fraud in connection with a grant from Sedgwick County
- 8 counts of money laundering
The investigating agencies are the FBI and investigators from the Sedgwick County District Attorney’s Office.