Charges Filed Against Paving Company Employee in a DBE Fraud Scheme
On October 16, 2013, Boggs Paving, Inc.; Carl "Drew" Boggs, III; Kevin Hicks; Greg Miller; Greg Tucker; Styx Cuthbertson Trucking Company, Inc.; John "Styx" Cuthbertson; and Arnold Mann were charged in U.S. District Court, Charlotte, North Carolina, for their roles in a disadvantaged business enterprise (DBE) fraud scheme involving over $87 million in federal and state-funded contracts. This indictment supersedes an indictment filed in July 2013 and adds Mann as a defendant.
The indictment alleges that from 2003 to present, Boggs Paving fraudulently obtained contracts by falsely certifying that Cuthbertson would perform work as a DBE or a Small Business Enterprise (SBE). However, Cuthbertson was used by Boggs Paving only as a "pass-through entity" to obtain these contracts and the majority of the work was performed by Boggs Paving affiliates.
The indictment further alleges that a bank account in Cuthbertson’s name was used to deposit the DBE and SBE payments to give the appearance that they were receiving the payments. However, the account was actually controlled by Boggs Paving and the majority of the payments were funneled back to Boggs Paving affiliates. Additionally, Boggs Paving made false and misleading statements to the North Carolina Department of Transportation, South Carolina Department of Transportation, and other federal-grant recipients on DBE applications, renewal statements, and DBE payment certifications.
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.