The U.S. Attorney’s Office is seeking a minimum forfeiture of $1.5 million as well as the $2.2 million Waxhaw home of the president of Boggs Paving Inc. in its prosecution of the Monroe-based road contractor.
The company pleaded guilty Sept. 10 to one count of conspiracy to defraud the U.S. government during its acquisition of federally funded road construction contracts in North and South Carolina from 2004 to 2013.
In a bill of particulars filed Wednesday, federal prosecutors identified the money and home as being “in addition to property already identified,” but did not specify what that property is. A bill of particulars is generally filed in response to a defendant’s request for more information.
Boggs Paving Inc. and five of its current or former executives, along with Styx Cuthbertson Trucking Co. Inc. and its owner, John “Styx” Cuthbertson, were indicted in 2013 collectively on 30 charges of conspiracy, wire and mail fraud, money laundering conspiracy, money laundering and making a false statement to a bank.
The indictment charges that Boggs Paving fraudulently claimed Cuthbertson Trucking, a disadvantaged business enterprise, would perform work valued at $3.7 million on 35 road contracts totaling $87.6 million. In fact, the indictment charges, Boggs Paving performed the work and kicked back about $375,000 to Cuthbertson and his Wingate-based trucking company in return for naming him as a subcontractor.
When funding road contracts, the federal government 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.
Since June, all of the defendants have pleaded guilty to at least one count in the indictment, and charges against Cuthbertson Trucking were dismissed after Cuthbertson pleaded guilty to conspiracy to defraud the government. For some, the U.S. Attorney’s Office has recommended reduced sentences in exchange for the defendants’ cooperation in the case and a dismissal of the remaining charges.
However, court records did not indicate that the 28 counts remaining against Boggs Paving had been resolved, and a Nov. 17 docket call is scheduled before U.S. District Judge Max O. Cogburn Jr. At that time, attorneys will likely either confirm they are ready to begin a trial or announce that an agreement has been reached.
A spokeswoman for the U.S. Attorney’s Office and attorneys for Boggs Paving did not respond to questions seeking clarification on Thursday.
Maximum sentences on the charges range from five to 20 years with financial penalties of $250,000 to $500,000. In Wednesday’s filing, prosecutors indicated they are also seeking property forfeitures equal to the net proceeds Boggs Paving attained through the contracts.
The Longview home of the company’s president and co-owner, Carl Andrew “Drew” Boggs III, was bought in a short sale for $1.4 million in March 2013, just months before the indictment, and is valued by Union County real estate records at nearly $2.2 million.