Boggs Paving execs begin sentences

By: Roberta Fuchs//January 19, 2016//

Boggs Paving execs begin sentences

By: Roberta Fuchs//January 19, 2016//

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Carl Andrew “Drew” Boggs III, who pleaded guilty in 2014 to defrauding the U.S. government on nearly $88 million in road construction contracts, has begun serving a 30-month prison sentence at the Edgefield federal corrections institution in South Carolina.

The Edgefield facility, about 25 miles north of Augusta, Georgia, houses 1,950 inmates. An adjacent minimum-security satellite camp has another 480 prisoners.

Boggs is joined at the medium-security facility by Gregg Miller, a former Boggs Paving Inc. vice president who is serving 15 months followed by two years of probation for his part in the scheme.

Boggs’ company, Boggs Paving Inc. of Monroe, bid on contracts for road projects in the Carolinas between 2004 and 2013 that were partially funded by the U.S. Department of Transportation and required that the company subcontract some of the work to a disadvantaged business enterprise (DBE).

Boggs Paving claimed $3.75 million in DBE credits for subcontracting work to minority-owned Styx Cuthbertson Trucking Co. of Wingate, but according to the U.S. Attorney’s Office, Boggs Paving did the work and paid John “Styx” Cuthbertson $375,432 as a kickback in the scheme.

Several Boggs Paving employees and Cuthbertson were charged with a total of 30 counts of fraud and conspiracy. All of the defendants in the case pleaded guilty to at least one count in 2014.

Boggs, 51, and Miller, 61, were sentenced in November. Boggs’s prison sentence is to be followed by two years of supervised release. He also was ordered to pay a $15,000 fine. Boggs Paving was fined $500,000.

Also sentenced in November were:

*Kevin Hicks of Monroe, Boggs’ former chief financial officer, who received two years’ probation and a $2,000 fine.

*Cuthbertson, of Monroe, who received two years of probation and three months of house arrest, although he will be permitted to work. Cuthbertson was also fined $2,000.

*Greg Tucker of Oakboro, a former Boggs Paving vice president, project manager and estimator, who was sentenced to two years of probation and fined $1,000.

*Former Boggs Paving project manager Arnold Mann of Fort Mill, South Carolina, who was sentenced to two years of probation and ordered to pay $7,500. Mann was the first to plead and cooperated with investigators.

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