Three military-industrial executives with Department of Defense contracts have been indicted for allegedly making illegal contributions to Sen. Susan Collins’ (R-Maine) reelection bid.
According to a statement by the Department of Justice (DOJ), the three executives under investigation are Martin Kao, former chief executive of the firm Martin Defense Group, Clifford Chen, its chief financial officer, and Lawrence “Kahele” Lum Kee, an accountant for the firm.
Under the Federal Election Campaign Act of 1971, restrictions are placed upon who can make donations to candidates and the maximum amount that they can donate to those campaigns. Military contractors are among those prohibited from making campaign contributions under the legislation, in part due to the conflicts of interest that such contributions entail.
In an effort to get around this restriction, the three indicted men allegedly formed a shell company in 2019 called the Society of Young Women Scientist and Engineers. From there, they funneled $150,000 to the Collin-supporting 1820 PAC.
According to the DOJ statement, the three men also “allegedly used family members as conduits to make illegal contributions to the campaign committee of the same candidate, and then reimbursed themselves for those donations using funds obtained from their employer.” Donations given this way exceeded $52,000.
The charge, if proven to be true, would put the three men in clear violation of the Federal Election Campaign Act, which prohibits the use of “conduits,” or go-betweens to give donations in a secretive or roundabout way.
The trio has been charged with conspiracy to defraud the United States and to make conduit and government contractor contributions, making conduit contributions, and making government contractor contributions, according to the official indictment (pdf). Kao, the chief executive, has also been charged with two counts of making false statements for causing the submission of false information to the Federal Election Committee.
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