CHARLOTTE, N.C. — A former Monroe businessman pleaded guilty for his role in an $87 million fraud scheme. Β
Kevin Hicks, 43, was the Chief Financial Officer for Boggs Paving Inc. Β He pleaded guilty to one count of conspiracy to defraud the United States Department of Transportation and one count of money laundering conspiracy.
Officials say Hicks was in charge of Boggs Paving’s accounts payable and receivable, job cost accounting, human resources and information technology. Β
He is accused of conspiring and fraudulently obtaining federally and state funded construction contracts by falsely certifying that a disadvantaged business enterprise or a small business enterprise would perform and be paid for portion of the work on those contracts. Β
Hicks is accused of using Boggs Paving and Styx Cuthbertson Trucking Company as a pass through entity to obtain the lucrative government-funded construction contracts. Β
According to filed court documents and court proceedings, from June 2004 through July 2013, Boggs Paving was the prime contractor on 35 federally-funded contracts, and was a subcontractor for two additional contracts, worth over $87.6 million.
Boggs Paving claimed DBE credits of approximately $3.7 million on these contracts for payments purportedly made to Styx. Styx only received payments of approximately $375,432 for actual work on these contracts, court records show.
Hicks has been released on bond and will be sentenced at a later date. Β He is facing a maximum of five years in prison and a $250,000 fine for the conspiracy to defraud USDOT charge and a maximum of 20 years in prison and $250,000 fine for the money laundering charge. Β
