20020672 Ver 3_Attachment 15 - 08-20-14 5 indicted in alleged scheme to defraud the government_20141124

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5 indicted in alleged scheme to
defraud the government in paving
contracts
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Posted: 3:44 p.m. Tuesday, Aug. 20, 2013
5 indicted in alleged scheme to defraud the
government in paving contracts
COMMENT (1)
By Kathryn Burcham
MONROE, N.C. — Five men indicted in an alleged
scheme to defraud the government of tens of
millions of dollars in paving contracts have pleaded
not guilty.
The men faced a federal judge for their first
appearance Tuesday morning after they were
charged last month in a 29-count indictment
including fraud, conspiracy and money laundering.
Federal investigators allege Drew Boggs, the
owner of Monroe-based Boggs Paving, three of his
top executives, and John "Styx" Cuthbertson
worked together since 2003 to win federal and
state contracts totaling $87 million.
The indictment said Boggs won the contracts by claiming to use Cuthbertson's
trucking business, which is classified as a disadvantaged business enterprise.
Instead, federal investigators said Boggs did the work itself, and even went so far as
to create fake Cuthbertson decals and put them on Boggs trucks. Authorities said
Boggs then paid itself for the work, and gave Cuthbertson a kickback for his role in
the alleged scheme.
Boggs' attorney, Ken Bell told Channel 9 his client is innocent.
"He is not guilty and we just look forward to a trial and hope everybody waits for it,"
Bell said.
Bell did not directly answer a question about why Boggs Corporation is paying for the
defense of suspects indicted, including Cuthbertson.
Family members of Cuthbertson pushed away microphones and refused comment.
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Attachment 15