Whitcraft LLC and Berkshire Manufactured Products, Inc., collectively known as the Whitcraft Companies, have paid $1,317,653.44 to settle allegations of violating the False Claims Act. Acting United States Attorney for the District of Connecticut, Marc H. Silverman, announced this settlement. The allegations asserted that the companies improperly secured contracts reserved for small businesses despite being ineligible.
Located in Eastford, Connecticut, Whitcraft LLC, and in Newburyport, Massachusetts, Berkshire Manufactured Products, Inc., both produce aerospace sheet metal components. Since April 2017, the companies were part of a private equity group. This acquisition resulted in them no longer qualifying as "small business concerns" under Small Business Administration regulations. They reportedly continued to claim small business status and received 71 contracts from April 2017 to November 2022 under this pretense.
Contractors must report potential violations of the False Claims Act to the government. On December 23, 2022, during a sale-related due diligence process, the Whitcraft Companies revealed their potential ineligibility to the government. Their voluntary disclosure and cooperation were acknowledged in the settlement process.
The investigation involved 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. Assistant U.S. Attorney Sarah Gruber handled the legal proceedings related to the matter.
