A Hawaiian defense contractor whose business has offices and employees in Maine has been accused of falsifying loan applications to receive $12.8 million in federal funds from a coronavirus relief program.
Martin Kao was arrested Wednesday and charged with bank fraud and money laundering. The news was first reported by Civil Beat, a Hawaii-based investigative news organization.
According to a 37-page criminal complaint filed by the U.S. Department of Justice, Kao is suspected of lying on two applications to receive funds under the Paycheck Protection Program for small businesses, part of the CARES Act passed by Congress in late March to address the pandemic. Maine Sen. Susan Collins was a co-author of the act.
Kao and several of his employees have donated to Collins’ reelection campaign, and the two appeared together in Maine last summer when Collins announced an $8 million federal contract to his company, Navartek LLC, now known