Local construction company fights fraud charges

Local construction company fights fraud charges


by TONY BURBECK / NBC Charlotte

Bio | Email | Follow: @TonyWCNC


Posted on July 25, 2013 at 7:43 PM

Updated Thursday, Jul 25 at 8:01 PM

MONROE, N.C. -- A local construction company accused of fraud, conspiracy and laundering millions of dollars says it will fight the allegations in court.

Federal prosecutors say Monroe-based Boggs Paving lied to get $87 million in state and federal  projects over a ten-year span and charged the business and top executives Wednesday.

Boggs responded with this statement:

"We are extremely disappointed in the allegations from the U.S. Attorney's Office for the Western District of North Carolina. Boggs Paving has been cooperating fully with officials since learning of questions about our company's relationship with Styx Cuthbertson Trucking, Inc., which is a certified Disadvantaged Business Enterprise. Despite this cooperation, the U.S. Attorney's Office has brought charges that we will vigorously contest," said company spokesperson Bobby Fisher.

"While this unfortunate situation is most troubling, we look forward to having our day in court and an opportunity to present our side of the story. We are confident a full and complete examination of the facts will clear Boggs Paving and all its employees."

Prosecutors allege Boggs got state and federal road projects by claiming a disadvantaged business called Styx Cuthbertson Trucking Company out of Wingate  would get a percentage of the work.

Styx is a certified disadvantaged business. The government uses that designation to make sure economically challenged business owners share in federal, state and local projects.  Styx Cuthbertson Trucking Company Owner John "Styx" Cuthbertson is also charged in the same indictment.

State records give an address of Cuthbertson's company in  Wingate.  NBC Charlotte tried to contact him but was not able to get in touch.  Neighbors say he parks a truck at the house.

Prosecutors allege when Boggs wrote checks to Styx, most of it went right back to Boggs Paving through a series of bank transactions and that Styx got a kickback for it.

They say overall Boggs claimed credits to Styx worth $3.7 million, when Styx actually got about $375,000, and the rest went back to Boggs.

Prosecutors alleged Boggs tried to cover up the alleged crimes by using magnetic decals bearing the Styx logo and placing it over the Boggs logo to make it look like Styx was doing the work.

Denice Harris, a longtime friend of Carl Andrew Boggs III, aka "Drew," part owner and president of Boggs Paving, who has been indicted, doesn't believe it.

"I'm shocked because I don't believe it.  It's just not his character," Harris said.

The five people charged in the indictment are scheduled to be in federal court August 20.