Pro-Publica: Trump protected Suasan Collins from FB bribery probe

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NYT has independently corroborated the main facts

Trump not only shielded his party from reputational harm and helped it keep a Senate seat by calling off an FBI corruption probe, he got exquisite leverage over Sen. Collins at the time of his reelection

In the final weeks of 2019, a top fundraiser for Sen. Susan Collins walked into a perilous meeting at a Corner Bakery in Washington, D.C.
For the first time in her two-decade Senate career, the Republican lawmaker from Maine was in danger of losing her seat. President Donald Trump’s dismal approval ratings were dragging her down in the polls, and she was falling behind her likely 2020 Democratic challenger in fundraising.

Scott Reed, head of the Collins super PAC, was on a mission to close that gap. Reed was meeting that day with three executives from a Hawaiian defense contractor, Navatek. A year earlier, Collins had helped their company land a multimillion-dollar Navy research contract in Maine. Now, seated at a coffee shop not far from the U.S. Capitol, Reed asked them for a $500,000 donation.

Government contractors are banned from making political contributions. More consequentially, for the company to offer donations to Collins in exchange for an official action, or for Collins to accept, would cons ute criminal bribery.

But the company did have such a proposal: Navatek was hungry for more government contracts in Maine. If they cut a big check, the CEO told Reed, Navatek wanted Collins to guarantee tens of millions of dollars in additional federal funding.

To skirt campaign finance laws and conceal the source of the funds, Navatek planned to funnel the donation through a s company. The CEO wanted assurance that Collins would know where the money came from. Reed confirmed that she would, the executive said — and that Navatek would get its government contracts.

After the Corner Bakery meeting, Navatek’s CEO, Martin Kao, sent an initial $150,000 to the Collins super PAC using the s company. Two months later, he told Navatek executives thatCollins committed to getting the company $32 million in naval contracts, according to an internal company email reviewed by ProPublica.

Three years later, Kao holed up in a conference room to recount the Corner Bakery meeting to a group of four FBI agents and federal prosecutors.

The FBI had seen through his s company ruse, and in 2022 a grand jury indicted him for making illegal campaign contributions. No one working for Collins was charged.

Facing years in prison, Kao hoped to do less time by revealing the entire scheme.

What he told them has never before become public. The Corner Bakery meeting, he asserted, was just one episode in a sprawling pay-to-play operation that embroiled some of the most powerful figures in Congress.

https://www.propublica.org/article/f...-investigation

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Over three days at the U.S. attorney’s office in Honolulu, Kao laid out in devastating detail how his operation worked. He gave agents a 50-page do ent naming dozens of lobbyists, congressional staffers and members of Congress who he said helped him trade cash for contracts. Kao and his close associates had donated nearly $900,000 to dozens of politicians, allowing Navatek to establish operations in half a dozen states with over $40 million a year in government funding.

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Most damningly, Kao told FBI agents and prosecutors, the company’s work for the government was of no real value. Navatek’s research under his stewardship never resulted in products the military wanted to buy, ProPublica found.
Kao’s tell-all interviews with the FBI lasted into late 2024. His confessions opened up an entirely new phase of the investigation. Agents sifted through hundreds of thousands of records seized during Kao’s arrest and found that many were consistent with his account of widespread influence peddling.


Kao had credibility issues. He was now a felon trying to avoid a lengthy prison sentence. And there were other challenges. Building a corruption case against elected officials requires extraordinary proof of a quid pro quo arrangement, in part because the Supreme Court has narrowed what counts as bribery.


Even so, by the end of 2024, the agents had enough evidence to pursue a sweeping bribery probe that could ensnare top lawmakers of both political parties. They asked their supervisors to approve a new investigation and contemplated using undercover operatives to gather more evidence. Although their effort was in its early stages, and it was unclear where it would lead, FBI agents asked Kao extensive questions about his dealings with Collins and her office.

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Then Trump returned to the White House. Consumed by a campaign of vengeance, he stacked the Department of Justice with his personal lawyers and demanded a purge of anyone who had ever investigated him.


The specialized FBI and DOJ teams handling public corruption investigations, some of which were involved in Trump-related cases, were eviscerated. One of the agents who had taken Kao’s confession was pushed out as retribution for her role in investigating Trump’s attempt to overturn the 2020 election. Dozens of agents and prosecutors quit amid the department’s destruction, including the career attorney assigned to Kao’s case.


Trump’s Justice Department no longer takes on public corruption in any meaningful fashion, former officials said. The investigation sparked by Kao’s revelations is dead. And the government is no longer talking to an informant who had offered a road map to corruption in Congress.

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Cleta Mitc was one of Trump's 2020 post-election fixers

She was on the call to Brad, e.g..

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Separately, Kao later told the FBI, there would be a meeting of just the key players. One engineer, who traveled with Kao to D.C. to explain the technical side of a project, recalled being sent out of the room once the subject of money came up. Sometimes in these smaller meetings, members of Congress directly asked Kao for donations, he told the FBI. In other cases, he said, Navatek’s lobbyists would relay a request from an intermediary for a specific dollar amount.


Kao told the FBI that the lawmakers, lobbyists and Navatek brass understood these donations were bribes and that the payments were essential to the entire scheme. Kao believed he was buying Navatek’s way into the annual defense budget, not winning over members with innovative engineering proposals.


“I’m not red or blue, I’m green,” he would tell congressional staffers, a former Navatek employee recalled.

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Often, Navatek composed language that ended up, word for word, in Senate funding requests, former employees said. In 2019, for example, Navatek’s priorities were tucked into page 185 of the 307-page report released by the Senate Appropriations Committee. The committee set aside $21.5 million for “hybrid composite structures research for enhanced mobility,” “electric propulsion for military craft and advanced planing hulls” and a “test bed for autonomous ship systems.” Although Navatek’s name does not appear on the page, these were all projects the company requested, according to internal do ents and interviews with former employees.


Once the budget passed, lawmakers’ staff leaned on Navy officials to award Navatek the money. Former contracting officers told ProPublica they felt pressure to go along because money from those contracts funded their office — and because members of Congress had confronted dissenting naval officials in the past. “There’s only so many battles you can fight,” one said. So Congress sometimes got its way even when Navatek’s projects made little sense.

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Inside Navatek, employees referred to this strategy as “the method.” And it enabled the company to string together tens of millions of dollars in contracts. The result was the same as getting earmarks: a reliable, growing revenue stream bankrolled by U.S. taxpayers.


“It was a simple enough play. Let’s find the small states that have complementary universities … [and] let’s get access to their senators,” Eric Schiff, a former Navatek executive, told ProPublica. “I’ve met Susan Collins. You can get access to Susan Collins. Once we got the first things working with Maine, then we said, ‘Well, let’s keep reaching.’ And so we did.”


In a statement to ProPublica, Navatek founder Loui said Kao’s “unethical and illegal method of winning contracts” was a departure from how he operated the company prior to Kao’s ownership.


Kao boosted Navatek’s annual revenue from $10 million around the time Loui sold him the company to almost $40 million when he was arrested in 2020. In the second half of 2019 alone, Navatek paid a roster of five lobbying shops more than $500,000.


Even Navatek’s executives were surprised at how far their money went in D.C. “It was eye-opening for me, frankly. ‘Oh my God, all of it is for sale. It’s all for sale,’” Schiff said.


The key players in Kao’s pay-to-play deals went to great lengths to meet in person and leave no trace of an actual quid pro quo, he told agents. “That is why I literally had to fly to D.C. almost every week,” Kao later told the FBI. “Sometimes for a 15-minute meeting.”


But the FBI compiled emails, which ProPublica reviewed, that were suggestive of illegal bargains. Navatek executives and lobbyists spoke openly as if they were buying lawmakers’ assistance. In one back-and-forth, a lobbyist and a company executive described another senator as “fundamentally transactional” and having “a reputation as a pay-to-play office.”


In another message, Andy Winer, who former executives said was Navatek’s chief strategist, reminded Kao to budget money for political contributions based on how much the company wanted in congressional funding the following year.

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While some projects involved potentially meaningful research, Navatek’s bread and butter was R&D that went nowhere. As a slideshow prepared by an executive explained, “We thrive in the valley of death,” the term for the bureaucratic gap where research languishes without being developed into a product. The slideshow noted that none of the technology had ever actually been deployed.


The Office of Naval Research did not respond to a request for comment.

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Collins would not meet unless he agreed to donate to her campaign, he said. While it is not illegal for politicians to exchange face time for contributions — in this case, just a few thousand dollars — it was not the last time Collins would seek Kao’s support.


Navatek had been eager to expand beyond Hawaii, and Maine was a perfect beachhead — a small, coastal state hungry for high-tech jobs that happened to be represented by a senior member of the Senate Appropriations Committee. Collins, more than most appropriators, likes to trumpet the dollars she brings home.


To work with Collins, Navatek hired a lobbyist, Glen Mandigo, who also lobbied for the University of Maine and was tight with her office. Mandigo asked how much Navatek wanted in funding and how much Kao was willing to support Collins, Kao told the FBI. The University of Maine did not reply to a request for comment.


In that first meeting with Collins and her staff, Kao pitched an $8 million boat hull research project for Navatek and the university. Collins seemed supportive. Not long after, Mandigo called Kao and said Collins wanted him to bundle tens of thousands of dollars for her reelection, suggesting Navatek throw a fundraiser, Kao said.

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In early 2020, the Campaign Legal Center, a nonprofit good government group, noticed something strange in the public filings for the Collins super PAC. The PAC had received a $150,000 donation from a newly created LLC with a typo in its name: the Society of Young Women Scientist and Engineers, with no S at the end of “Scientist.”


This was the $150,000 Kao donated after the Corner Bakery meeting. The money had come from Navatek’s account, not Kao’s, violating a ban on government contractors making donations.


A check for $150,000 to the Collins super PAC 1820 from the Society of Young Women Scientist and Engineers — a s company that obscured the actual donor. PacMar Technologies LLC, fka Martin Defense Group, LLC v. Kao
The center suspected the society was not a real group but a pass-through to hide the iden y of a major political donor. It filed a complaint with the Federal Election Commission. It took only a few days for a Hawaii journalist to discover Kao’s wife’s name on the society’s paperwork, linking the s company to Navatek.