Paving Company and Individuals Charged in DBE Scheme
On July 24, 2013, Boggs Paving Inc. (Boggs Paving), Carl "Drew" Boggs, Kevin Hicks, Greg Miller, Greg Tucker, Styx Cuthbertson Trucking Company, Inc. (Styx Cuthbertson), and John Cuthbertson were charged in U.S. District Court, Charlotte, North Carolina, for their roles in a disadvantaged business enterprise (DBE) scheme involving over $87 million in federal and state-funded contracts.
The indictment alleges that from 2003 to present, Boggs Paving fraudulently obtained contracts by falsely certifying that Styx Cuthbertson would perform work as a DBE or a Small Business Enterprise (SBE). However, Styx Cuthbertson was used by Boggs Paving 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 Styx's name was used to deposit the DBE and SBE payments to give the appearance that Styx was receiving the payments. The account was actually controlled by Boggs Paving and the majority of the payments to the account were funneled back to Boggs Paving affiliates. Additionally, Boggs Paving made false and misleading statements to North Carolina Department of Transportation, South Carolina Department of Transportation, and other federal-grant receiving entities 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.