Eastern CT Aerospace Company Involved In $1 Million Fed Settlement

EASTFORD, CT — A aerospace parts company based in eastern Connecticut has settled in a million-dollar case involving the federal False Claims Act.

Marc H. Silverman, acting United States attorney for the District of Connecticut, said that Whitcraft LLC and Berkshire Manufactured Products, Inc. (collectively referred to as "Whitcraft Companies"), have entered into a civil settlement agreement with the United States government and have paid $1,317,653.44 to resolve allegations that they violated the False Claims Act when the Whitcraft Companies improperly obtained set-aside contracts reserved for small businesses that they were ineligible to receive.

Whitcraft LLC, a limited liability company located in Eastford, Connecticut, and Berkshire Manufactured Products, Inc., a corporation located in Newburyport, Massachusetts, machine and fabricate sheet metal aerospace parts and components for commercial and military aviation applications. In April 2017, controlling interests in both companies were acquired by a private equity group.

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. 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 small business set-aside contracts that they were ineligible to receive, Silverman said.

Government contractors are required to timely disclose to the government, in writing, whenever they have credible evidence that they have committed a violation of the False Claims Act., Silverman said. On Dec 23, 2022, in connection with due diligence performed relating to the Whitcraft Companies' sale to another entity, the Whitcraft Companies voluntarily disclosed to the government facts concerning their potential affiliation with other businesses that the government contends made them ineligible to be awarded contracts set aside for small businesses, Silverman said.. The Whitcraft Companies received credit in the settlement for their voluntary disclosure and cooperation with the government during its investigation, he added.

The investigation was conducted by the Defense Criminal Investigative Service, the Defense Contract Audit Agency Operations Investigative Support Division, the SBA Office of General Counsel, and DLA Aviation Fraud Counsel.

The matter was handled by Assistant U.S. Attorney Sarah Gruber.