The federal government’s conspiracy and fraud case against Boggs Paving Inc. has been continued until Nov. 17, when it has been placed on U.S. District Judge Max O. Cogburn Jr.’s docket call calendar, according to court records.
The company pleaded guilty last week to one count of conspiracy to defraud the government, but the plea was not part of an agreement with the U.S. Attorney’s Office, and the fate of the remaining 28 counts against the road construction company was unclear Monday.
Generally at a docket call, attorneys present the status of the case, such as confirming that they are ready for trial or announcing that an agreement has been reached.
Six defendants have pleaded guilty to either one or two charges in the 30-count indictment, and the remaining charges are expected to be dismissed if the defendants cooperate with investigators.
However, no such agreement was filed regarding the company itself.
Monroe-based Boggs Paving was indicted in 2013 on charges that it fraudulently claimed a disadvantaged business enterprise would perform work valued at $3.7 million on federally funded road contracts in North and South Carolina between 2003 and 2013. In fact, the indictment charges, Boggs Paving performed the work and kicked back about $375,000 to John “Styx” Cuthbertson and his trucking company in return for naming him as a subcontractor. Styx Cuthbertson Trucking Co. Inc. of Wingate was a certified disadvantaged business enterprise.
When awarding road contracts, the government often requires bids to show that a portion of the work is subcontracted to small businesses owned by women, minorities or other disadvantaged groups – or at least proof of a good-faith effort to find such companies.
The indictment charged that a bank account was set up in Cuthbertson’s name but actually controlled by Boggs Paving; that Boggs Paving bid on projects under Cuthbertson’s name; and that Boggs Paving at times attached magnetic signs to its trucks that indicated they were owned by Cuthbertson.
Carl Andrew “Drew” Boggs III, the president and co-owner of Boggs Paving Inc., pleaded guilty Wednesday on behalf of the company. Sentencing has not yet been scheduled, but could include a fine; one to five years of organizational probation; and restitution, according to the U.S. Attorney’s Office.
Sentencing for the others who have pleaded guilty has not been set, either. The sentences could range from probation to 20 years in prison; several hundred thousand dollars in fines; and restitution. Those who pleaded guilty were:
- Drew Boggs, 50, of Waxhaw, to one count of conspiracy and one count of money laundering conspiracy.
- Arnold Mann, 55, of Fort Mill, S.C., to one count of conspiracy. Under the plea agreement, he is likely to receive probation when sentenced.
- Kevin Hicks, 43, of Monroe, the former chief financial officer at Boggs Paving Inc., to one count of conspiracy to defraud the U.S. Department of Transportation and one count of money laundering conspiracy. The U.S. Attorney’s Office recommended a sentence of up to 15 months.
- Greg Tucker, 41, of Oakboro, a former Boggs Paving vice president, project manager and estimator, to one count of conspiracy to defraud the U.S. DOT. The U.S. Attorney’s Office recommended a sentence of one to 15 months.
- Greg Miller, 60, of Matthews, a vice president at Boggs Paving Inc. of Monroe, to one count of conspiracy.. The U.S. Attorney’s Office recommended a reduced sentence.
- *Cuthbertson, 69, of Monroe, to one count of conspiracy to commit wire fraud and mail fraud. The U.S. Attorney’s Office said it would recommend a reduced sentence. The charges against his company were dismissed.