A group of Connecticut companies have agreed to pay $5.2 million after obtaining several contracts reserved for small businesses that it was ineligible to receive, according to federal prosecutors.
The civil settlement agreement resolved allegations that Numet Machining Techniques, LLC; Numet Industries, Inc.; KCO Numet, Inc; and Kidd & Company, LLC violated the false claims act, according to U.S. Attorney Vanessa Roberts Avery.
Numet Machining Techniques, a limited liability company based in Orange, manufactures and provides aerospace engine components for the U.S. military and commercial purchases. The company was acquired by Numet Industries, Inc. in August 2011. Avery’s office said Numet Industries was owned by KCO Numet, which was ultimately owned by individuals associated with Kidd & Company, LLC, a family office investment company in Greenwich.
After Numet’s acquisition, Avery’s office said it ceased to qualify as a small business as it was affiliated through stock ownership with other businesses. This meant that the company could not qualify as a “small business concern” within the Small Business Administration’s regulations relating to government contracts, according to Avery’s office.
Still, between August 2011 and February 2016, Numet falsely claimed that it was a small business and received 22 contracts that were supposed to go to small businesses, Avery’s office said.
Additionally, from September 2013 to February 2016, Numet falsely claimed it was a...
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