Edgar M. Baker Jr, Money Laundering, New York 2016

State: New York
Agency: DOJ USAO
Category: Drug Trafficking|Fraud &#038; Financial Crimes|Organized Crime
Source: <a href="https://www.justice.gov/usao-ndny/pr/three-arrested-connection-international-money-laundering-conspiracy" style="color:#cc0000;" target="_blank" rel="nofollow noopener">Official Source ↗

ALBANY, NEW YORK – The grimy details of an international money laundering conspiracy have hit the streets as three men are facing serious charges for their role in a $46.8 million scam involving the smuggling of cut rag tobacco into Canada.

The alleged masterminds, Edgar M. Baker Jr., 46, from Southern Pines, North Carolina; Jeffrey Doctor, 48, of Washington, D.C.; and Carey Terrance, 39, of Hogansburg, New York, were nabbed last week on charges of conspiracy to commit money laundering.

According to sources close to the investigation, the trio is accused of working together from 2013 to 2016 to obtain cut rag tobacco and sneak it across the border. Once in Canada, the contraband was processed into cigarettes, avoiding taxes and duties that would have bolstered Canadian and Quebecois government coffers.

Funds for the tobacco were funneled from Canada through New York’s Northern District to North Carolina. The operation, which involved over 18 million pounds of tobacco, resulted in an estimated $3 million in lost tax revenue for the Canadian and Quebecois governments.

Should they be found guilty, each defendant could face up to 20 years behind bars, a fine of up to $500,000 or twice the value of the funds involved, and a term of supervised release stretching up to three years. Sentencing will depend on various factors including the U.S. Sentencing Guidelines.

This case is a joint effort by Homeland Security Investigations (HSI) and IRS-Criminal Investigation (IRS-CID), with Assistant U.S. Attorney Emily C. Powers leading the prosecution.

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