Posted on October 5, 2020 by iwano@_84
The CEO of a defense contractor based in Hawaii has been charged with nearly $13 million in COVID-19 relief fraud.
Martin Kao is the CEO of Navatek, which was renamed Martin Defense Group back in July. According to the Department of Justice, the 47-year-old executive fraudulently obtained about $12.8 million in Payment Protection Program (PPP) loans guaranteed under the CARES Act.
According to the complaint, Kao submitted at least two fraudulent PPP loan applications by falsely inflating his number of employees on the loan application and falsely certifying his company had not received another PPP loan. He stated that his company had about 500 employees when it had fewer than 150.
After receiving the nearly $13 million in loans, he transferred more than $2 million into his personal accounts.
According to Civil Beat, the CEO’s offices in Honolulu were raided by federal investigators. Kao also has political connections due