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Defense contractor charged for allegedly stealing more than $12.8M in PPP funds

A defense contractor in Hawaii has been charged with bank fraud and money laundering for stealing more than $12.8 million in Paycheck Protection Program (PPP) money. 

Martin Kao, CEO of Martin Defense Group LLC, previously known as Navatek LLC, is being arrested on two counts of bank fraud and five counts of money laundering. He is accused of at least two fraudulent PPP loan applications.

Out of the $12.8 million he received, Kao transferred more than $2 million into his own personal accounts, a criminal complaint said.

“According to the charges, Kao falsely inflated the number of employees on the loan application and falsely certified that the applicant and its affiliates would not receive, and had not received, another PPP loan,” the U.S. attorney’s office in Hawaii said in a statement.

The PPP is a program established by Congress in March that provides forgivable loans to small businesses impacted by

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Hawaii defense contractor charged with $12.8m coronavirus relief fraud



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A high-profile Hawaii-based defense contractor has been arrested on charges of swindling $12.8 million in funds intended to prop up small businesses during COVID-19.

Martin Kao, 47, a generous political donor, was arrested on Wednesday and charged with bank fraud and money laundering, accused of siphoning off $2 million of the fraudulent loan into his own personal bank account.

The Department of Justice accused Kao of falsifying loan applications so that he could receive more money than he was entitled to under the Paycheck Protection Program (PPP), which was created by Congress as part of the $2 trillion CARES Act meant to stave off financial ruin for individuals and small businesses during the pandemic.   

Kao submitted at least two fraudulent PPP loan applications, prosecutors allege.

They claim he falsely inflated the number of employees on the loan application, and falsely certified that

Read More

Hawaii defense contractor accused of $12.8M in fraud coronavirus PPP loans

A Hawaii defense contractor has been charged with bank fraud and money laundering for stealing more than $12.8 million in Paycheck Protection Program money meant to assist businesses affected by the coronavirus pandemic, federal authorities alleged Wednesday.

Martin Kao, CEO of Martin Defense Group LLC, formerly known as Navatek LLC, transferred more than $2 million into his own personal accounts, a criminal complaint said.

Kao also submitted at least two fraudulent loan applications, authorities said.

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“According to the charges, Kao falsely inflated the number of employees on the loan application and falsely certified that the applicant and its affiliates would not receive, and had not received, another PPP loan,” the U.S. attorney’s office in Hawaii said in a statement.

Congress authorized the Paycheck Protection Program, known as PPP, in March to provide emergency financial assistance to those suffering economic effects of the pandemic through

Read More

Hawaii defense contractor charged with defrauding government out of $12.8m in coronavirus relief aid

A high-profile Hawaii-based defense contractor has been arrested on charges of swindling $12.8 million in funds intended to prop up small businesses during COVID-19.

Martin Kao, 47, a generous political donor, was arrested on Wednesday and charged with bank fraud and money laundering, accused of siphoning off $2 million of the fraudulent loan into his own personal bank account.

The Department of Justice accused Kao of falsifying loan applications so that he could receive more money than he was entitled to under the Paycheck Protection Program (PPP), which was created by Congress as part of the $2 trillion CARES Act meant to stave off financial ruin for individuals and small businesses during the pandemic.   

Kao submitted at least two fraudulent PPP loan applications, prosecutors allege.

They claim he falsely inflated the number of employees on the loan application, and falsely certified that the applicant and its affiliates would not receive,

Read More