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Connecticut Aerospace Manufacturer Agrees to Pay $280,000 to Settle Civil Fraud Allegations

On November 30, 2015, Aero Gear, Inc. (Aero Gear), agreed to pay $280,000 as part of a civil settlement agreement with the United States Attorney's Office in New Haven, Connecticut. Aero Gear is a company based in Windsor, Connecticut, that designs, engineers, and manufactures gears and gearbox assemblies for the commercial and military aerospace industry.

In 2006 and 2009, Aero Gear was awarded two U.S. Army contracts valued at over $5.8 million to develop technology to manufacture and extend the life of gears for the Army’s legacy aircraft fleet. The United States contends that it has certain civil claims against Aero Gear arising from improper conduct associated with the two Army contracts. The United States alleges that Aero Gear used equipment purchased with contract funds to conduct commercial work that was unrelated to the contracts. Aero Gear denies the Government's allegations and enters into the settlement in compromise of the disputed claims.

The allegations and investigation that led to the civil settlement were uncovered during the course of our joint investigation with the Defense Criminal Investigative Service.