State College

Federal agents spend hours at downtown State College company locations

Federal agents were at KCF Technologies in downtown State College

Department of Defense officers were at KCF Technologies' offices in State College on May 7, 2019 .
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Department of Defense officers were at KCF Technologies' offices in State College on May 7, 2019 .

Agents from several federal agencies, including the Department of Defense, visited two KCF Technologies offices in downtown State College on Tuesday.

With law enforcement cars flanking each of the offices, uniformed officers and agents were seen going in and out of the buildings at 336 S. Fraser St. and 141 W. Beaver Ave. about 10 a.m. They were on scene for at least two hours.

In a statement, the company said the DOD was there to review records relating to specific contracts.

“We have little information that can be shared publicly about this matter, but what can be disclosed is that our dialogue is confined in scope and does not relate to our commercial business or SmartDiagnostics program,” the company said in a statement. “We look forward to continuing our many years of successful work with the U.S. government.”

Company attorney John Lhota declined to answer additional questions.

The DOD was joined by at least the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and the U.S. Army Criminal Investigation Command.

State College police partially closed one lane of West Beaver Avenue between South Fraser Street and Alley for about two hours.

A DCIS representative said the collective law enforcement presence was being coordinated by Assistant U.S. Attorney Kim Daniel, who is an anti-terrorism advisory council and criminal health care fraud coordinator, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania’s website.

“Unfortunately, as a matter of policy, we will neither confirm nor deny the existence of any ongoing investigation,” Dawn Clark, public affairs officer for the U.S. Attorney’s Office, said.

Company President and CEO Jeremy Frank co-founded the company, which optimizes manufacturing by developing and commercializing products and solutions for industry and the military, in 2000 and eventually established its headquarters at 336 S. Fraser St.

In October, the company, along with the Centre County Economic Development Partnership, announced a $1.5 million expansion in partnership in downtown State College.

A $150,000 investment for area municipalities was part of the project, including $50,000 from the Centre County Commissioners’ general fund and $25,000 each from the State College borough and College, Ferguson and Patton townships.

Bret Pallotto primarily reports on courts and crime for the Centre Daily Times. He grew up in Lewistown and graduated from Lock Haven University.