Ex-CEO accused of virus loan fraud pleads not guilty
HONOLULU — A former CEO of a Hawaii company accused of defrauding banks of money meant to assist businesses affected by the coronavirus pandemic pleaded not guilty Wednesday.
Martin Kao, who was 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.
Kao transferred more than $2 million into his own personal accounts, according to an indictment. Investigators talked to an executive and a former employee who said the company wasn’t affected by the pandemic, court documents said.
He stepped down as CEO in November, a spokeswoman said.
Authorities describe his company as a “research, engineering, design and innovations company that specializes in novel systems for the Department of Defense and other partners in academia and other scientific fields.”
During a brief arraignment via telephone Wednesday, defense attorney Michael Green entered the not guilty plea on behalf of Kao.
Trial is scheduled for July.
Police shooting review panel picks ex-chief as chair
HONOLULU — A former Maui police chief will lead the board that reviews police shootings.
Gary Yabuta, director of the federal High Intensity Drug Trafficking Area in Hawaii, was unanimously selected Tuesday by the Law Enforcement Officer Independent Review Board to serve as chairman at the board’s first meeting in 15 months.
“We have a job to do, plain and simple. We were chosen for this job,” said Yabuta, a 31-year veteran of the Maui Police Department. “It’s quite a task, but looking at the talent here and the dedication and the greatness about all of you, we are definitely on the right track.”
The meeting came amid questions about two recent shootings where officers killed a Black man and a Micronesian teen.
The board was created in 2017 under the state attorney general’s Criminal Justice Division. Its members review all shootings by police officers in Hawaii, evaluate the fairness of criminal investigations and determine whether prosecution or further investigation is needed.
But the panel’s recommendations are nonbinding, and their proceedings and recommendations are mostly confidential.
The board’s last meeting was in January 2020 because of concerns arising from the coronavirus pandemic and the resignation of several board members.
The nine-member board has two vacancies for Kauai and Hawaii counties.
