In late 2019, Scott Reed, head of the Collins super PAC, met with executives from the Hawaiian defense contractor Navatek at a Washington, D.C. coffee shop. Reed was seeking a $500,000 donation to help Republican Senator Susan Collins close a fundraising gap against her Democratic challenger. Navatek, which had previously benefited from a multimillion-dollar Navy research contract in Maine with Collins' support, proposed a deal involving a shell company to funnel the donation in exchange for guaranteed federal funding. Navatek's CEO, Martin Kao, later sent $150,000 to the super PAC through the shell company.
Three years later, Kao cooperated with the FBI, revealing a broader pay-to-play scheme that allegedly involved multiple lawmakers and lobbyists. He described how Navatek used donations to secure government contracts, including $32 million in naval funding for Collins' home state of Maine. Kao’s revelations led to an FBI investigation into potential corruption, but the probe was reportedly halted when Donald Trump returned to the White House in 2021. Trump's administration allegedly removed public corruption investigators, including those involved in the Navatek case, and the Justice Department reportedly stopped pursuing such cases aggressively.
According to Kao, Navatek’s research under his leadership had no real military value, yet the company still secured millions in government contracts. Emails show that Collins' office pushed the Navy to award specific contracts to Navatek, even though such awards are typically competitive. Reed confirmed he was aware of the shell company scheme, and an email from one of his subordinates suggested that Collins' office was informed of the $150,000 donation. Collins' office denied any wrongdoing, stating that the FBI and Biden-led Department of Justice had "thoroughly examined" the Navatek matter and concluded it in 2021. The office claimed that the Collins campaign "disgorged the illegal contributions" made by Kao without their knowledge. Reed did not respond to detailed questions about the meeting or Kao's allegations, stating he had no communications with Collins or her staff about Navatek.
Navatek’s strategy for securing contracts involved targeting members of the House and Senate appropriations committees. Kao and his team used lobbyists to pitch research projects to lawmakers, often with large initial donations. Internal documents show that Navatek's proposals were included in the defense budget with specific language ensuring the company was the only logical recipient. Despite the lack of tangible products, the company secured tens of millions in government funding.
Kao’s cooperation with the FBI continued into late 2024, but the investigation was reportedly abandoned due to political pressures. An FBI spokesperson stated that no evidence implicating Collins or her campaign was found, and the agency had investigated claims against her "years ago" and found nothing. The White House referred ProPublica to the FBI, which did not respond to questions about the new investigation based on Kao's cooperation.
FBI Investigation into Congressional Corruption Linked to Navatek and Susan Collins
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