A federal judge has set May 15 as the deadline for the defendants in a massive road-construction contract fraud to file objections to their presentence investigation reports.
Five current and former executives and employees of Boggs Paving Inc. of Monroe, along with Wingate trucking company owner John “Styx” Cuthbertson, are expected to be sentenced this year after having pleaded guilty to various charges of fraud and conspiracy.
Twenty-nine charges resulted from an investigation into 10 years of road contracts in North and South Carolina totaling nearly $88 million that were awarded to Boggs Paving on the condition that the company subcontract with a disadvantaged business enterprise for a portion of the work. Instead, federal prosecutors charged, Boggs Paving employees performed the work and the company kicked back a portion of its proceeds to Cuthbertson in exchange for the use of his name.
The defendants were indicted in July 2013 and pleaded guilty between June and September 2014 to either one or two charges. The possible sentences range from probation for former Boggs Paving employee Arnold Mann of Fort Mill, S.C., who was the first to plead guilty under an agreement with prosecutors, to up to 20 years for money laundering conspiracy, to which the paving company’s president and co-owner, Carl Andrew “Drew” Boggs III of Waxhaw, pleaded guilty. The charges also carry fines ranging from $250,000 to $500,000, and possible penalties equaling the net proceeds the companies received through the fraudulent contracts.
On April 17, the defendants’ attorneys requested that the deadline be extended to May 15, saying they needed more time to draft potential objections “considering the complexity of the loss calculation and other significant facts at issue” that will be considered in the sentencings and penalties. U.S. District Judge Max O. Cogburn Jr. granted the motion.
In addition to Boggs, Mann and Cuthbertson, the defendants are Kevin Hicks of Monroe, Greg Tucker of Oakboro, and Greg Miller of Matthews.