A federal judge in Washington, D.C., has sentenced Martin Kao, a former defense contractor from Hawaiʻi, to 33 months in prison for his role in a scheme that funneled over $200,000 in illegal campaign contributions to Republican U.S. Senator Susan Collins and a supporting super PAC during her 2020 reelection campaign.
Kao, who previously served as president and CEO of Navatek LLC, a firm that secured contracts from the U.S. Defense Department, executed these illicit contributions shortly after the company was awarded an $8 million contract, which was instrumental in Collins’ funding efforts. The illegal donations were seen by prosecutors as an attempt to curry favor with Collins, who was identified in court records as Candidate A.
During the sentencing hearing, U.S. District Court Judge Carl Nichols expressed concerns that Kao’s actions were indicative of a larger issue. He suggested that more cases like Kao’s likely exist but remain undetected. Nichols emphasized the need for a deterrent sentence that not only addressed Kao’s offenses but could also act as a warning for others considering similar illegal activities.
Kao appeared via teleconference from a federal prison in Oregon, where he is currently serving an 87-month sentence related to bank fraud and misappropriating nearly $13 million from a COVID-19 relief program. He has been ordered to repay over $12.8 million in restitution and fulfill 12,800 hours of community service as part of this sentence.
Additionally, he faces civil litigation from former business partners who are seeking to make him financially accountable for his criminal actions. This ongoing case has disclosed troubling information about how Kao and others attempted to exert influence over politicians through their financial contributions.
Judge Nichols specified that Kao would serve the 33-month sentence concurrently with his existing sentence for prior offenses, meaning he would not face additional prison time.
In a memorandum submitted prior to the sentencing, Assistant U.S. Attorney Josh Gold highlighted the Department of Justice’s support of the concurrent sentencing arrangement for Kao, citing his acceptance of responsibility and candor regarding his role in the illicit contributions. Gold noted that Kao’s sentence was crucial for deterring future violations of campaign finance laws among federal contractors and donors.
Kao’s defense attorney, Michelle Peterson, sought to argue for a lighter sentence, portraying her client as a transformed individual. In her pre-sentencing memo, she described Kao as a “humbled and changed man” who lost his position at Navatek, which has now rebranded as PacMar Technologies. She noted that during his time awaiting sentencing, Kao took on the role of a line cook at the Cheesecake Factory and sought to further his education by attending classes at Harvard.
Peterson added that Kao cooperated with government inquiries regarding the conduit contribution scheme and the broader culture of corruption that existed within Navatek and its interactions with Washington politics. She pointed out that he did not seek any personal gain from his admissions and felt it was important to be transparent about his involvement in a corrupt system that affected various factions of the political and business communities.
However, specifics about the information Kao shared and whether it led to further investigations were not disclosed, and Peterson refrained from commenting on the case following the hearing.
Kao was indicted in 2022 alongside two former colleagues from Navatek, Lawrence Lum Kee and Clifford Chen. They were charged with facilitating illegal contributions to Collins’ campaign by using company funds to reimburse family members for making straw donations, thus circumventing federal laws. Additionally, they created a shell company named the Society of Young Women Scientist and Engineers LLC to direct $150,000 in Navatek funds to the super PAC supporting Collins’ reelection efforts.
Details of the case drawn from the indictment align with a 2019 investigation by Civil Beat into the irregular contributions made by Kao and his associates to Collins.
Kao entered a guilty plea in 2022, just months after the indictment, while Lum Kee and Chen also pleaded guilty in 2023, receiving sentences of probation.
In response to the situation, a spokesperson for Collins indicated that her campaign fully cooperated with the DOJ’s investigation and returned all funds tied to Kao and his associates. As she prepares for the 2026 election, Collins faces challenges, including a competitor in Janet Mills, the two-term Democratic governor of Maine.
image source from：civilbeat
