A newly formed highway construction company has landed more than $27 million in new government projects across the Carolinas despite its deep ties to a discredited North Carolina paving firm barred from bidding on state contracts.
An Associated Press review shows Lynches River Contracting sprang into existence after Carl “Drew” Boggs pleaded guilty in August 2014 in a bid-rigging and kickback scheme involving $88 million in highway projects for his company, Boggs Paving. By court orders, Boggs Paving is barred from bidding on contracts as are its affiliates, companies with interlocking management, and those with a “common use of employees.”
Nevertheless, Boggs’ brother — and a co-owner of the barred company — David “Chris” Boggs signed paperwork last September creating Lynches River at the address of an existing Boggs Paving affiliate. He then turned ownership over to two trusts the brothers established to benefit their children. The new company also named Boggs Paving managers as its president and vice president.
The setup means Boggs Paving “can essentially continue to generate economic wealth for their families, which indirectly benefits the debarred wrongdoers,” South Carolina Inspector General Patrick Maley wrote in a report Thursday. Maley said the situation raised serious concerns but appeared to be legal, and he recommended new regulations to prevent similar situations in the future.
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