(AP) — A former CEO of a Hawai’i company accused of defrauding banks of money meant to assist businesses affected by the coronavirus pandemic is pleading not guilty. Martin Kao, former CEO of Martin Defense Group LLC, formerly known as Navatek LLC, is charged with bank fraud and money laundering. Authorities say he defrauded banks of more than $12.8 million through the Paycheck Protection Program. According to an indictment, Kao transferred more than $2 million into his own personal accounts. Congress authorized the program to provide emergency financial assistance through forgivable loans to small businesses for job retention and other expenses.
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