Federal investigators amassed sufficient evidence in late 2024 to launch a sweeping bribery probe examining interactions between U.S. Senator Susan Collins and defense contractor executive Martin Kao, before political shifts in Washington ultimately shuttered the inquiry. ProPublica reported that the FBI anti-corruption squad scrutinized the relationship between Collins and Kao, the CEO of Navatek, focusing on alleged illegal campaign contributions and subsequent naval contracts.
The investigation centered on events originating in 2019, when Kao alleged that the head of a pro-Collins super PAC met with Navatek executives to request a $500,000 donation. Because government contractors face strict bans on making political contributions, funneling company funds to secure official actions would constitute criminal bribery. To bypass campaign finance laws, Kao used a shell company to route an initial $150,000 to the super PAC. An email reviewed by ProPublica showed the head of the super PAC acknowledging Kao’s backing with the reply, “Very smart.”
Naval Contracts and the Shell Company Ruse
Weeks after the financial transfer, Kao reportedly told his team that Collins committed to securing $32 million in naval contracts for Navatek. The federal government, however, unraveled the shell company arrangement. A grand jury indicted Kao in 2022 for making illegal campaign contributions, and facing potential imprisonment, he offered details of the scheme to the FBI in exchange for a reduced sentence.
Kao and his associates had previously distributed nearly $900,000 in donations to dozens of politicians, enabling Navatek to expand operations into half a dozen states with upwards of $40 million annually in government funding. Kao identified Collins as Navatek’s most important patron.
Political Shifts and the End of the Inquiry
The trajectory of the investigation shifted dramatically when Donald Trump returned to office, leading to the dismantling of FBI and Department of Justice public corruption teams. Consequently, the inquiry ground to a halt, and federal authorities ceased communication with Kao, who had provided a detailed account of the alleged congressional corruption.
In response to the publication of the findings, a deputy chief of staff for Senator Collins stated that her office “vigorously” denies allegations of bribery and pay-for-play made by Kao, asserting that her office “fully cooperated” with the FBI. Following the report, Collins characterized the reporting as a “smear job” taking “the words of a twice-convicted felon over my office, campaign staff and me.”
ProPublica’s investigation relied on a review of FBI evidence, thousands of pages of legal records, and dozens of interviews with individuals familiar with Navatek, its Washington operations, and the federal inquiry. The White House directed inquiries to the FBI, where a spokesperson stated that the agency “ultimately found nothing implicating Senator Collins” or her campaign, though the spokesperson did not address questions regarding the new phase of the investigation prompted by Kao’s disclosures. Navatek founder Steven Loui described Kao’s methods as “unethical and illegal,” adding that the company fully complied with law enforcement.
