A Hawaii-based defense contractor funneled hundreds of thousands of dollars toward Susan Collins's 2020 reelection effort through a shell company while her office simultaneously worked to steer millions in federal contracts his way, according to a new investigative report. The account centers on Navatek CEO Martin Kao, who was later indicted and received an 87-month prison sentence for wire fraud, plus a separate 33-month sentence for illegal donations in October 2025. The FBI said an earlier investigation found nothing implicating Collins or her campaign; a broader bribery probe pursued in 2024 later died.
According to ProPublica, an $8 million federal contract involved Navatek, and Kao pursued a Navy research contract in Maine. Kao also donated to Collins's campaign. In the final weeks of 2019, Scott Reed, who headed Collins's super PAC, asked Navatek executives for a $500,000 donation at a Corner Bakery meeting, and Kao agreed to provide it. ProPublica reports that an internal company email described Collins as having committed to obtaining $32 million in naval contracts for Navatek, while the senator's office simultaneously steered government contracts worth millions toward the company even as her campaign sought donations from Kao's network.
How the Shell Company Donation Unraveled
Kao funneled the first $150,000 of that pledge through a shell company, per ProPublica's reporting. Federal law bars government contractors from making political contributions. Kao also hosted a Collins fundraiser in 2019 that pulled in more than $40,000, as reported by The Boston Globe.
Raid, Indictment, and a Guilty Plea
A grand jury indicted him in 2022, but no one working for Collins was charged in Kao's case, per ProPublica. Kao also told FBI agents that he and close associates had donated nearly $900,000 to dozens of politicians, and named congressional staffers, lobbyists, and members of Congress he said helped trade cash for contracts.
Those admissions reportedly fed a much larger anti-corruption effort. By the end of 2024, FBI agents felt they had enough evidence to pursue a sweeping bribery investigation involving lawmakers from both parties, according to ProPublica's reporting. Yahoo News reports that the FBI opened an investigation into alleged illegal payments to Collins's reelection campaign in 2021. ProPublica reports that a broader pay-to-play bribery probe pursued in 2024 was later shuttered as the Trump administration reshaped the Justice Department.
Conflicting Accounts of Why the Collins Probe Ended
The FBI said its earlier look at claims against Collins found nothing implicating the senator or her campaign. As for the bribery probe pursued in 2024, The Globe's takeaways piece reported that it was dropped because investigators found little evidence to corroborate Kao's claims.
Collins's office has pushed back forcefully. Her deputy chief of staff said the office “vigorously” denies allegations of bribery and pay-for-play and that the campaign cooperated fully with the FBI throughout the investigation, according to ProPublica. ProPublica also said its reporters independently corroborated much of Kao's account through evidence, legal records, and dozens of interviews. For its part, ProPublica flagged the arrangement's legal risk directly on Threads, noting that government contractors are banned from making political contributions.
What Federal Law Says About Contractor Donations
Federal law generally makes it unlawful for anyone who holds a contract with the United States to make political contributions, under the statute governing contributions by government contractors.
The story landed in the middle of a competitive Senate race. Collins, the Republican senator seeking another term, was at 45% support to Democratic challenger Troy Jackson's 48% in a poll. Collins also won reelection in 2020. Collins publicly responded to ProPublica's findings.
