Former Kansas Rep. allegedly defrauds government of $450K in COVID-19 relief funds
WICHITA, Kan. (WIBW) - A former Kansas State Representative from Wichita has allegedly defrauded federal, state and local governments of $450,000 in COVID-19 relief funds.
Acting U.S. Attorney for the District of Kansas Duston Slinkard’s Office says a federal grand jury in Wichita indicted former Representative Michael Capps (KS-85), 43, on charges that he defrauded federal, state and local agencies of over $450,000 in COVID-19 business recovery funds.
According to court documents, Capps, of Wichita, is the owner and majority owner of Midwest Business Groups, LLC and Krivacy, LLC. Documents also indicate that he is a member of the Fourth and Long Foundation.
Capps has been accused of submitting false and fraudulent documents on behalf of the companies he owned to the Small Business Administration for Economic Injury Disaster Loans, as well as to the Kansas Department of Commerce for Small Business Working Capital grants and Sedgwick Co. for a Sedgwick Co. Cares grant.
Capps also allegedly sent false and fraudulent documents to Emprise Bank in order to get a Paycheck Protection Program loan.
According to Slinkard, Capps has been charged with the following:
- Making a false statement to a bank for a PPP loan
- 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 form KDOC
- Wire fraud in connection with a grant from Sedgwick Co.
- Eight counts of money laundering
Slinkard said the Federal Bureau of Investigation and Sedgwick Co. District Attorney’s Office are investigating the case and Assistant U.S. Attorney Alan Metzger is prosecuting the case.
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