Former Chief Financial Officer of Boggs Paving, Inc. Enters into Plea Agreement
On July 17, 2014, Kevin Hicks, former Chief Financial Officer for Boggs Paving, Inc., pleaded guilty in U.S. District Court, Charlotte, North Carolina, to conspiracy to commit money laundering against the United States.
According to the indictment, from at least 2003 through October 2013 Boggs Paving, Inc. (Boggs) obtained tens of millions of dollars of construction contracts funded by the U.S. Department of Transportation by fraudulently certifying that Styx Cuthbertson Trucking (Styx), a certified Disadvantaged Business Enterprise (DBE), performed several million dollars of hauling-type work. In reality, the majority of the work was performed by Boggs and other non-DBEs.
To create the appearance that Styx performed the work and received the payments, it is alleged that Boggs, among other things, deposited the payments into a bank account owned by Styx, but controlled by Boggs. The respective funds were then paid back to Boggs and its affiliates.