CRIMINAL CAPITALI$M

Treasurer allegedly transferred $340,000 from Kentucky arts non-profits to himself



Bill Estep
Fri, December 23, 2022 at 7:19 AM MST·1 min read

The former treasurer of two non-profit organizations in southern Kentucky switched more than $340,000 from their accounts to his, a federal grand jury has charged.

Charles Davis, 56, of Russell Springs, faces two counts of wire fraud.

According to the indictment, Davis switched a total of $224,142 to his account from Artworks, in Jamestown, between April 2017 and December 2020 while serving as treasurer.

The organization provides programs that include classes and workshops in music, dance, visual art and theater, summer camps for children and early-childhood arts education, according to its site.

Davis also transferred $116,688 to his account from the Russell County Arts Council between July 2019 and December 2020 while he was treasurer there, the indictment said.

Davis used the money to make payments on his credit cards, according to a news release from U.S. Attorney Michael A. Bennett and Jodi Cohen, special agent in charge of the FBI in Kentucky.

Davis was indicted Dec. 14, but the indictment was sealed this week until he was arrested in Florida. He was released under a $45,000 bond, according to the court record.

Each wire fraud charge is punishable by up to 40 years in prison.

Former Kansas lawmaker convicted of COVID-19 relief fraud


 Kansas state Rep. Michael Capps, R-Wichita, testifies during a committee hearing in favor of his bill to require the national motto of "In God We Trust" to be posted in public buildings and schools, Thursday, Jan. 30, 2020, at the Statehouse in Topeka, Kan. A jury has found the former Kansas state lawmaker guilty, Wednesday, Dec. 22, 2022, of 12 felonies for lying on applications for federal COVID-19 relief. Federal prosecutors said Capps filed forms inflating the number of employees he had at two businesses and a sports foundation, and then applied for loans to pay the non-existent employees.

 (AP Photo/John Hanna, File) 

Thu, December 22, 2022
WICHITA, Kan. (AP) — A former Kansas state lawmaker was found guilty by a federal jury Wednesday of 12 felonies for lying on applications for federal COVID-19 relief.

Federal prosecutors said Wichita Republican Michael Capps, 44, filed forms inflating the number of employees he had at two businesses and a sports foundation, and then applied for loans to pay the nonexistent employees. A federal grand jury indicted Capps in September 2021 and he pleaded not guilty.

The Wichita Eagle reported that Capps was found guilty of three counts of making false statements on loan applications, one count of bank fraud, four counts of wire fraud and four counts of money laundering. Capps could face millions of dollars in fines and decades in prison at sentencing.

Capps was acquitted Wednesday on six other counts, and a 19th count was dismissed before trial.

Prosecutors said the fraud involved the Small Business Administration’s Paycheck Protection Program and Emergency Injury Disaster Loan programs, which were designed to provide assistance to businesses that struggled during the pandemic.

Capps and his defense lawyer Kurt Kerns did not respond to questions from reporters after the verdict.