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Paving Company Exec. Pleads Guilty in $87 Million Fraud Scheme

On Aug. 28, president and CEO of Boggs Paving Inc. of Monroe, Carl “Drew” Boggs, pled guilty in a case regarding $87 million fraud against the state and federal government.

According to an article in the Charlotte Observer, Boggs entered his plea to charges of conspiracy to defraud the U.S. Department of transportation and to money laundering at the Charlotte federal courthouse before U.S. Magistrate Judge David Cayer. If convicted, Boggs could face up to 25 years in prison and $750,000 in fines. He will likely also have to pay restitution.

Four other executives of Boggs Paving have been charged in this case, in which prosecutors claim that the company lied about the role of a minority-owned contractor in order to secure government contracts. The CEO of a Wingate trucking company which is, in fact, minority-owned, John “Styx” Cuthbertson, has also been charged. According to prosecutors, Boggs paid Cuthbertson for the use of his company’s name so that Boggs Paving would qualify for jobs as a DBE (disadvantaged business enterprise). Investigators found that Boggs paid Styx millions of dollars for jobs his company did not participate, but then secretly funneled the money back into his own accounts.

“It’s disheartening to think anyone would defraud government programs designed to help hardworking Americans, essentially robbing worthy businessmen and women of the chance to achieve their dreams,” said John Strong, special agent in charge of the FBI in North Carolina. In addition to the FBI, the U.S. Attorney’s Office, the Internal Revenue Service and the federal highway department also participated in the investigation.

With the support of his defense attorney and if he fully cooperates with ongoing investigations into Boggs Paving, Mr. Boggs may only serve five years in prison and other charges against him may be dropped. If you have been charged with fraud or another serious criminal offense in North Carolina, you need the guidance of an experienced attorney. Throughout North Carolina, citizens have trusted criminal attorney Curtis R. High to defend their rights for more than 19 years. To learn more about how Attorney High can help you in your pursuit of justice, contact our law office.

Note: Curtis R. High is not representing any parties involved in this case