WICHITA, Kan. (KSNW) — On Thursday, the prosecution continued presenting its case in the trial of former Kansas Representative Michael Capps, as Capps took the stand in his own defense. The U.S. Attorney’s Office alleges that Capps cheated the system in order to get federal, state and local financial aid during the coronavirus pandemic.
Capps is being tried on 18 counts:
- False statement to a bank for a Paycheck Protection Program (PPP) loan
- Bank fraud — PPP Loan
- Three counts of false statements to the Small Business Administration (SBA) for an Economic Injury Disaster Loan
- Three counts of wire fraud, SBA
- Two counts of wire fraud, Kansas Dept. of Commerce
- Eight counts of money laundering
Capps had previously entered a not-guilty plea.
The prosecution called a Federal Bureau of Investigation (FBI) Special Agent to the stand. He was the lead investigator on the case that started because of an article published by The Wichita Eagle.
The agent testified Capps overstated income figures on loan applications by “over half a million” dollars and said Capps did not show proof of having any employees with the Internal Revenue Service (IRS).
Capps’ defense lawyer tried to paint a picture of an incomplete investigation by the FBI, asking the agent why the investigation did not record their interviews on camera but rather relied on reports that were written.
After the agent left the stand, the prosecution called a financial analyst to the stand. They used a visual aid to the jury that showed where the funds from the loans were transferred between Capp’s two businesses, Midwest Business Groups and Krivacy, LLC, in relation to the wire fraud charges.
After returning for lunch, the prosecution rested, and it was the defense’s turn to present their witnesses.
The first witness was a character testimony who talked about his relationship with Capps. He described Capps as a good businessman, father, and community man.
The defense then brought up one of Capps’ contractors, though he later said he never received any kind of 1099-Form from Capps. The FBI had previously interviewed this witness, as he had met Capps through a community organization and developed both a business relationship and a friendship with Capps.
After he left the stand, the defense called Capps’ adopted son, Charles, to the stand. Capps’ attorney said he was adopted when he was 10 years old from a broken home. Michael Capps would later take the stand and talked about how Charles’ biological mother’s battle with cancer, which she would later overcome, was the driving force for his adoption.
Charles testified he worked for Michael while in college after the pandemic forced him to retire from his college football career. Charles told the court he never received a 1099 form from Michael, but they did talk about it.