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Boggs Paving unlikely to go to trial

boggs.pavingThe U.S. Attorney’s Office does not expect to pursue 28 charges remaining against Boggs Paving Inc., which pleaded guilty Sept. 10 to one count of conspiracy to defraud the U.S. government.

The Monroe-based road construction company was scheduled for a docket call and possible start to a trial on Tuesday.

Assistant U.S. Attorney Jenny G. Sugar was joined by Boggs’ attorneys in filing a motion to continue the docket call.

The U.S. Attorney’s Office “is waiting on additional discovery” from Boggs Paving, it said in the motion filed Monday, and requests “that the pending counts remain on the Court’s calendar until all outstanding discovery disputes have been resolved.” Discovery is the process in which those involved in a court case are required to turn over relevant information that is requested by the opposing side.

However, Sugar wrote in the motion, “The parties do not anticipate a trial in this matter. … Once the discovery dispute has been resolved, the United States will file a motion to dismiss the remaining counts.”

U.S. Attorney’s Office spokeswoman Lia Bantavani said she could not comment on how the outstanding discovery items could affect the outcome of the case.

Boggs Paving was indicted in July 2013 on charges of wire and mail fraud; conspiracy to defraud the federal government; money laundering; and money laundering conspiracy.

The charges resulted from a federal investigation into contracts for road projects in North and South Carolina between January 2003 and December 2012 that were partially funded by the U.S. Department of Transportation. Those contracts required that Boggs Paving subcontract a portion of work to a disadvantaged business enterprise.

Boggs Paving claimed DBE credits for subcontracting $3.75 million of the work to minority-owned Styx Cuthbertson Trucking Co. Inc. of Wingate. In fact, according to the U.S. Attorney’s Office, Boggs performed the work and paid Cuthbertson $375,432 as a kickback.

Executives at Boggs Paving were accused of setting up bank accounts in Cuthbertson’s name that were controlled by Boggs employees, and of placing magnetic signs on Boggs Paving trucks that bore Cuthbertson’s company name.

In the original indictment, Boggs Paving, four company executives, Cuthbertson Trucking and John “Styx” Cuthbertson were charged with 29 counts. In October, a superseding indictment added Boggs employee Arnold Mann and an additional charge against Cuthbertson of making a false statement to a bank.

Since late June:

*Company president and co-owner Carl Andrew “Drew” Boggs III, 50, of Waxhaw, pleaded guilty to one count of conspiracy and one count of money laundering conspiracy. An additional 27 counts will be dismissed.

* Arnold Mann, 55, of Fort Mill, S.C., pleaded guilty to one count of conspiracy. He was originally charged with 27 counts. 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., pleaded guilty to one count of conspiracy to defraud the U.S. Department of Transportation and one count of money laundering conspiracy. He was originally charged with 26 counts. 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, pleaded guilty to one count of conspiracy to defraud the U.S. DOT. He had been charged with 12 counts. 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, pleaded guilty to one count of conspiracy. He had been charged with 26 counts. The U.S. Attorney’s Office recommended a reduced sentence.

*Cuthbertson, 69, of Monroe, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud.  He had been charged with 30 counts. The U.S. Attorney’s Office said it would recommend a reduced sentence. The charges against his company were dismissed.

The charges carry maximum sentences of five to 20 years and fines of $250,000 to $500,000. The defendants could also be ordered to pay restitution. The U.S. Attorney’s Office has filed documents indicating it plans to seek at least $1.5 million from Drew Boggs.

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