COLUMBIA, S.C. — A newly-formed company is bidding on construction projects in South Carolina. But after receiving emails from its competitors, Eyewitness News found some parts of the business aren't new at all.
The company has numerous connections to the Boggs Group of companies. One of the companies was Boggs Paving, which was indicted by a federal grand jury in 2013 in a massive fraud case. Boggs Paving was barred from bidding on paving contracts in North and South Carolina.
Kim Lineberger, president of a Lancaster-based construction company, said it's a threat to her growing business. She said she was looking online and saw that a new company, Lynches River Contracting, had bid on numerous projects.
She doesn't think there is much new about the company.
"Same personnel, same assets," Lineberger said. "Yeah, absolutely it's the same company."
Lineberger and other competitors have raised concerns that Lynches River Contracting, or LRC, is connected to Boggs Paving in Monroe.
There were three companies within the parent company Boggs Group: Boggs Paving, Boggs Materials and Boggs Transport.
In 2013, a grand jury indicted Boggs Paving, its president Drew Boggs and several other executives for earning contracts by falsely stating that disadvantaged or small businesses would perform some of the work. Investigators said that during the time in question, the company earned $87 million in government contracts.
Several defendants, including Drew Boggs, have already pleaded guilty. He faces up to 25 years in prison.
The court froze the assets of Boggs Paving. Officials in North and South Carolina barred the company from bidding on road projects, according to documents written by an attorney representing LRC.
However, Chris Boggs, who started Boggs Paving with his brother Drew, was not indicted. A 9 Investigation found that in September, he started a new paving company, LRC. Documents showed that within three months, he stepped down and two former Boggs Paving employees became president and vice president.
Letters filed in court also showed that the company intends to use asphalt plants, dump trucks and other resources from two other companies associated with the Boggs name, including Boggs Materials and Boggs Transport.
"Where's the protection if they can just change their name and continue business as usual?" Lineberger said.
Eyewitness News contacted LRC. An attorney sent a statement, which said: "Lynches River Contracting Inc. is a new company that is separate from Boggs Paving. It did not purchase assets from Boggs Paving and is not owned or controlled by Boggs Paving, Drew Boggs or Chris Boggs."
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