20020672 Ver 3_Attachment 19 - 08-28-14 Drew Boggs pleads guilty to two felonies_20141124

CHARLOTTE —
Drew Boggs pleads guilty to two felonies
Aug. 28, 2014 @ 12:52 PM
Heather Smith
Carl "Drew" Boggs, CEO of Boggs Paving, entered a plea of guilty to two felony counts in
U.S. District Court Thursday morning.
Boggs waived his right to a court trial on 26 counts of conspiracy, money laundering and wire fraud. He is the
last individual to indicted after an FBI investigation resulted in an indictment of six people and two companies.
Judge David S. Cayer accepted Boggs' plea of guilty to one count conspiracy to defraud the federal
government and one count of money laundering. As part of his plea agreement, the other 24 charges will be
dismissed.
U.S. prosecutor Jenny G. Sugar told the court the conspiracy between Boggs and his codefendants resulted
in the loss of between $50 million and $100 million dollars. The two charges carry a combined prison
sentence of up to 25 years and fines of $750,000.
Last year's indictment came after investigators said employees of Boggs Paving and Styx Cuthbertson
Trucking worked together to get special minority contracts from the U.S. Department of Transportation, S.C.
Department of Transportation and N.C. Department of Transportation. Using Styx Cuthbertson's status as a
minority-owned business, Boggs Paving officials kept the money and did the projects while paying a "kick-
back" to Styx Cuthbertson Trucking. Boggs Paving set up an account in Styx's name to make it appear the
trucking company received the funds.
Fellow defendants Boggs Paving CFO Kevin Hicks, project manager Arnold Mann, project manager Greg
Miller, vice president Greg Tucker and John "Styx" Cuthbertson earlier took plea agreements. Drew Boggs
made the same move, despite defense attorneys entering motions to dismiss charges last month.
As part of the plea deal, the government can order defendants to pay restitution. If he cooperates with
prosecutors, federal attorneys will recommend a prison sentence of no more than 5 years.
Boggs made no comment to the court when he entered his plea.
His plea leaves just one last defendant - Boggs Paving Inc., Sugar said. It is still unclear if charges against the
company will continue on to trial or will be resolved with another plea agreement.
Boggs, Cuthbertson, Hicks, Mann, Miller, Tucker and Cuthbertson await sentencing. Sugar said that process
could take between six months to a year.
Boggs' attorney declined to comment immediately following the hearing.
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