Charlotte Company Facing Federal Fraud ChargesBy robertslaw, In Federal Crimes, 0 Comments
Money laundering and conspiracy to defraud the federal government are just two of the charges that a local Charlotte company is facing after a grand jury voted to indict Boggs Paving in a government contracting fraud scheme. Over the last 10 years, Boggs has won as much as $88 million in federal contracts, based in part on its assertions that it regularly does business with or subcontracts to Disadvantaged Business Enterprises (DBEs).
But, according to the government, Boggs substantially overstated the use of DBEs in fulfilling the terms of the government contracts that it was awarded. The paving company went so far as to advertise DBEs on its own work trucks to keep up the charade of funneling money to these businesses, which allowed them to gain favor in competitive contracting bids.
Instead of working with DBEs in the Charlotte area and elsewhere in North Carolina on the awarded contract, the government asserts that the company laundered the funds through a strawman bank account and then repaid itself for the work actually done.
The government asserts that a separate DBE and Small Business Enterprise (SBE) was paid kickbacks for its help with the fraud scheme.
The indictment includes 29 counts of money laundering, wire fraud and conspiracy to commit money laundering, wire fraud and mail fraud. If convicted, those involved in the government contract fraud scheme could face several years in prison. Money laundering is punishable by up to 10 years in prison, conspiracy to defraud is punishable by up to five years in prison and conspiracy to money launder is punishable by up to 20 years in prison.
Source: WBTV, “Local company faces federal indictment,” July 25, 2013