Martin Kao Sentenced to 7.25 Years for COVID Relief Fraud

HONOLULU, Hawaii — Martin Kao, 51, the former CEO of Martin Defense Group (formerly Navatek), has been sentenced to 87 months (7.25 years) in federal prison after being convicted of wire fraud, money laundering, and bank fraud related to COVID-relief programs.

Kao was also sentenced to five years of supervised release, ordered to pay restitution to the Small Business Administration, and required to complete 12,800 hours of community service.

As CEO, Kao inflated payroll figures, falsely claimed to have laid off employees, and sought duplicate loans from multiple banks, attempting to secure $13 million in Paycheck Protection Program (PPP) funds. He also falsified documents to acquire a $4.5 million mansion in Kahala.

In 2020, FBI agents raided the Martin Defense Group offices, and Kao was arrested. He pleaded guilty in 2022 to eight federal charges. Martin Defense Group, a prominent contractor for the Department of Defense, NASA, and other government agencies, is now under new management.

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