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North Carolina construction company charged in fraud conspiracy

When a company contracts with the government it is important the company is in compliance with all applicable laws. If a business fails to do this it can find itself in serious criminal troubles. This could result in large fines as well as time behind bars. One North Carolina company seems to have failed to do this when it was recently charged with fraud against the government.

The company is being accused of being part of a conspiracy fraud ring which had allegedly conspired to defraud the U.S. Department of Transportation. The charges also included conspiring to commit wire fraud, conspiracy to launder money, conspiring to commit mail fraud and a variety of other white collar crimes. The company was charged along with six alleged co-conspirators in the indictment which included 29 criminal counts against the defendants.

The company, Boggs Paving, eventually grew into Boggs Group, which is made up of a variety of different companies owned by the original owners of Boggs Paving. The prosecutors are accusing Boggs of receiving construction contracts funded by federal and state funds for the last decade by using another company as a pass-through entity. The other company was Styx Cuthbertson Trucking Company Inc. which was an officially certified disadvantaged business enterprise (DBE) as well as a small business enterprise (SBE) which qualified Styx to receive special government contracts.

It is alleged that Boggs merely used Styx as a shell company while almost all of the funds earned through government contracts went directly to Boggs who was hired as a subcontractor for Styx. If the prosecution can prove this to be true Boggs will be convicted of fraud along with other charges included in the criminal case filed in North Carolina. On the other hand, the defendants have the legal right to a zealous defense in the court of law. With knowledge of applicable statutes and case law the defendants may have various legal defense strategies to choose from.

Source: equipmentworld.com, "North Carolina paving contractor indicted for government contract fraud by using “disadvantaged business” as a pass through," Wayne Grayson, July 29, 2013

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