A federal judge decided Friday that a Honolulu-based defense contractor accused of bilking the Paycheck Protection Program of $12.8 million can be released on $2 million bond while he awaits trial.
Martin Kao, the CEO of Navatek LLC faces multiple counts of bank fraud and money laundering for allegedly falsifying loan documents used to gain access to federal funds meant to help small businesses survive the economic fallout of the coronavirus pandemic.
He was arrested by federal agents in Honolulu on Wednesday and is being held in the Federal Detention Center. The detention hearing was held via telephone on Friday morning.
Federal prosecutors argued that Kao was a flight risk and that he should not be released from federal custody because he has millions of dollars in assets and legal status in Taiwan,