Prominent Hawaii Defense Contractor Arrested For CARES Act Fraud
Martin Kao is a prolific political donor whose company, Navatek LLC, has received millions of dollars in federal contracts.
WASHINGTON — A politically connected defense contractor in Hawaii was arrested and charged Wednesday by the U.S. Justice Department for allegedly bilking the federal government out of $12.8 million in coronavirus relief aid meant to help small businesses.
Martin Kao, 47, is the CEO of Martin Defense Group, formerly known as Navatek LLC, a Honolulu-based company that over the years has received millions of dollars in federal contracts, primarily to design state-of-the-art ship hulls for the U.S. Navy.
He’s charged with bank fraud and money laundering for falsifying loan applications for the Paycheck Protection Program that was created by Congress as part of the $2 trillion CARES Act meant to stave off financial ruin for individuals and businesses during the COVID-19 pandemic.
Kao is a prolific political donor. He, his family and his employees have contributed hundreds of thousands of dollars to federal politicians in recent years, including several members of the Senate Appropriations Committee. Hawaii Sen. Brian Schatz, who is on the committee, has also received significant campaign contributions from Kao and his affiliates.
Kao’s company also appears tied to a mysterious $150,000 donation made to a super PAC supporting U.S. Sen. Susan Collins of Maine, who is up for reelection.
https://www.civilbeat.org/2020/09/prominent-hawaii-defense-contractor-arrested-for-cares-act-fraud/