Two companies part of a collective, including one based in Connecticut, have entered into a million-dollar settlement to resolve allegations that they violated the False Claims Act by obtaining contracts reserved for small businesses.
Whitcraft LLC and Berkshire Manufactured Products, Inc., collectively referred to as Whitcraft Companies, entered into a civil settlement agreement with the United States by paying $1,317,653.44 to resolve allegations that they violated the False Claims Act, according to the U.S. Attorney’s Office.
Whitcraft LLC, which is a limited liability company located in Eastford, and Berkshire Manufactured Products, Inc., a company based in Newburyport, Massachusetts, “machine and fabricate sheet metal aerospace parts and components for commercial and military aviation applications,” the U.S. Attorney’s Office said.
Controlling interests in both companies were acquired by a private equity group in April 2017, according to federal officials.
The government contends that “after they were acquired in April 2017, the Whitcraft Companies ceased to qualify as ‘small business concerns’ within the meaning of the Small Business Administration regulations relating to government contracts due to the Whitcraft Companies’ affiliation through stock ownership with other businesses,” federal officials said. “Between April 2017 and November 2022, the Whitcraft Companies falsely certified that they were ‘small business concerns’ and, as a result, they were awarded 71...
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