Pacmar Technologies LLC, fka Martin Defense Group, LLC v. Kao

CourtDistrict Court, D. Hawaii
DecidedMarch 3, 2025
Docket1:22-cv-00283
StatusUnknown

This text of Pacmar Technologies LLC, fka Martin Defense Group, LLC v. Kao (Pacmar Technologies LLC, fka Martin Defense Group, LLC v. Kao) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacmar Technologies LLC, fka Martin Defense Group, LLC v. Kao, (D. Haw. 2025).

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF HAWAII

PACMAR TECHNOLOGIES LLC, fka CIV. NO. 22-00283 LEK-WRP MARTIN DEFENSE GROUP, LLC,

Plaintiff,

vs.

MARTIN KAO, TIFFANY JENNIFER LAM, LAWRENCE KAHELE LUM KEE, CLIFFORD CHEN, DUKE HARTMAN, SOCIETY OF YOUNG WOMEN SCIENTISTS AND ENGINEERS LLC,

Defendants.

ORDER GRANTING IN PART AND DENYING IN PART: DEFENDANT DUKE HARTMAN’S MOTION FOR SUMMARY JUDGMENT ON ALL CLAIMS AGAINST HARTMAN; DEFENDANT/CROSS-CLAIMANT CLIFFORD CHEN’S, DEFENDANT CROSS-CLAIMANT LAWRENCE KAHELE LUM KEE, DEFENDANT TIFFANY JENNIFER LAM, AND DEFENDANTS MARTIN KAO AND SOCIETY OF YOUNG WOMEN SCIENTISTS AND ENGINEERS, LLC’S RESPECTIVE JOINDERS IN HARTMAN’S MOTION

Before the Court is Defendant/Cross- Claimant/Counterclaimant Duke Hartman’s (“Hartman”) Motion for Summary Judgment on All Claims Against Hartman (“Motion”), filed on November 15, 2024. [Dkt. no. 186.] On January 3, 2025, Plaintiff/Counterclaim Defendant PacMar Technologies LLC, formerly known as Martin Defense Group, LLC (“PacMar”) filed its memorandum in opposition. [Dkt. no. 218.] Hartman filed a reply on January 10, 2025. [Dkt. no. 221.] On December 31, 2024, Defendant/Cross-Claimant Clifford Chen (“Chen”) filed a joinder in Hartman’s Motion (“Chen Joinder”). [Dkt. no. 214.] On January 3, 2025, Defendant/Cross-Claimant Lawrence Kahele Lum Kee (“Lum Kee”), Defendant Tiffany Jennifer Lam (“Lam”), Defendant Martin Kao (“Kao”), and Defendant Society of Young Women Scientists and Engineers, LLC. (“SYWSE”) filed joinders in Hartman’s Motion (“Lum Kee Joinder,” “Lam Joinder,” and “Kao and

SYWSE Joinder”). [Dkt. nos. 215-17.] These matters came on for hearing on January 24, 2025. For the reasons set forth below, Hartman’s Motion is granted in part and denied in part. Summary judgment is granted in favor of Hartman as to Count I, and denied with respect to Count II and the state law claims (Counts V through XIV). The Chen Joinder, the Lum Kee Joinder, the Lam Joinder, and the Kao and SYWSE Joinder are construed as joinders of simple agreement, and are granted in part and denied in part to the same extent as Hartman’s Motion. BACKGROUND On December 29, 2023, the Court issued its Order Granting in Part and Denying in Part: Defendant Duke Hartman’s

Motion to Dismiss Second Amended Complaint, Filed April 21, 2023 [ECF 97]; Defendant/Cross-Claimant Clifford Chen’s and Defendant/Cross-Claimant Lawrence Kahele Lum Kee’s Respective Joinders in Hartman’s Motion (“12/29/23 Order”). [Dkt. no. 116.1] In the 12/29/23 Order, the Court dismissed Counts III and IV as

1 The 12/29/23 Order is also available at 2023 WL 9047370. to all defendants. 12/29/23 Order, 2023 WL 9047370 at *18. The 12/29/23 Order also dismissed the following claims against Hartman: Count X, the portions of Count I alleging “Hartman’s facilitation of fund transfers from PacMar to SYWSE; the transfer of the $60,000 to fund scholarships; Hartman’s alleged

stealing of PacMar’s money to fund SYWSE’s initial start-up costs; and Hartman’s receipt of a pay raise,” id., and the portion of Count V alleging “claims of [Paycheck Protection Program (‘PPP’)] fraud stemming from Hartman’s withholding of information, campaign finance fraud as it related to Hartman’s facilitation of laundering money and receipt of a pay raise, Hartman’s alleged breach of duty by charging time worked on illegal schemes, and illegal transfer fraud,” id. Primarily at issue in the Motion are Counts I and II. See Motion, Mem. in Supp. at 1-2. Count I is a claim under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), Title 18 United States Code Section 1962(c). See Second Amended

Complaint, filed 4/21/23 (dkt. no. 97), at ¶¶ 322-54. The remaining portion of Count I against Hartman is based upon Hartman’s alleged participation in a coverup scheme, discussed below, and his role in directing money to scholarships. See 12/29/23 Order, 2023 WL 9047370 at *10. Count II is a Title 18 United States Code Section 1962(d) claim alleging a conspiracy to commit the RICO violation at issue in Count I. See Second Amended Complaint at ¶¶ 355-60. Counts V through XIV are state law claims. See id. at ¶¶ 387-473. In the Motion, Hartman argues that summary judgment must be granted in Hartman’s favor on Counts I and II, and that the Court should decline to exercise supplemental jurisdiction over the remaining state law claims

once the RICO claims are dismissed. See Motion, Mem. in Supp. at 1-2. The coverup scheme is extensively discussed in the 12/29/23 Order, and will not be repeated at length. Briefly, the Second Amended Complaint alleges that Hartman was enlisted to “direct and operate the SYWSE in its efforts to coverup the SYWSE’s illegal campaign donations,” Second Amended Complaint at ¶ 88, via establishing a scholarship program at various universities in order to “deflect investigators’ attention,” id. at ¶ 93. As summarized in the 12/29/23 Order, the relevant allegations to the coverup scheme are: I. Campaign Contributions

On September 17, 2019, Kao emailed Chen and Lum Kee regarding a political action committee named 1820 PAC. 1820 PAC supported United States Senator Susan Collins. See [Second Amended Complaint] at ¶¶ 61–62. Between August 2019 and August 2020, Kao, Lam, Chen, and Lum Kee made at least thirty-nine illegal political contributions to 1820 PAC worth approximately $173,968 of funds taken from PacMar. See id. at ¶¶ 69–70. $150,000 of those contributions was through a check sent from SYWSE to 1820 PAC. The contribution from SYWSE was money originally transferred to SYWSE from PacMar. See id. ¶¶ 80–83. On February 3, 2020, a complaint was filed with the Federal Election Commission (“FEC”), see id. at ¶ 84, against SYWSE, Lam, and “‘other persons who created and operated SYWSE, and made contributions to 1820 PAC in the name of SYWSE,’” [id. at ¶ 85 (brackets omitted)].

SYWSE was created on November 26, 2019 with Lam named as its registered agent and manager. See id. at ¶ 76. SYWSE was created “by Kao, Tiffany Lam, Chen, and Lum Kee for the sole purpose of making the illegal campaign donation to 1820 PAC.” [Id. at ¶ 78.] Hartman was allegedly “enlisted by Kao, Chen, and Lum Kee to direct and operate the SYWSE in its efforts to coverup the SYWSE’s illegal campaign donations[.]” [Id. at ¶ 88.] Federal criminal charges were brought against Kao, Chen, and Lum Kee, and Kao pled guilty to the charges against him. See id. at ¶¶ 91–92.

II. The Coverup of SYWSE’s Campaign Contributions

PacMar alleges that around February 5, 2020, Kao, Chen, Lum Kee, and Hartman planned to coverup SYWSE’s campaign contributions “by creating a scholarship program whereby the enterprise took [PacMar]’s money, laundered it through transfers to Kao, Tiffany Lam, and eventually to SYWSE, before donating the laundered funds to universities to create a façade of legitimacy for SYWSE that could be used to deflect investigators’ attention and scrutiny.” [Id. at ¶ 93.] Hartman was responsible for contacting universities to offer scholarships. [Id. at ¶ 99.] . . . “Between March and June 2020, Hartman oversaw and directed the payment of at least $60,000 for these ‘scholarships’ . . . .” [Id. at ¶ 103.]

12/29/23 Order, 2023 WL 9047370, at *2 (some alterations in 12/29/23 Order) (footnote omitted). Hartman worked for Navtek LLC, which changed its name to Martin Defense Group, LLC, and later changed its name to PacMar Technologies LLC, between September 2018 to January 2021. [Hartman’s Statement of Facts in Support of Motion for Summary Judgment, filed 11/15/24 (dkt. no. 187) (“Hartman CSOF”), at ¶ 1; Plaintiff’s Counter Statement of Facts in Opposition to Defendant Duke Hartman’s Motion for Summary Judgment, filed

1/3/25 (dkt. no.

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