Jeffrey Doctor, Tobacco Smuggling, New York 2023

Defendants Sentenced in Tobacco Smuggling Scheme

Albany, New York – In a shocking turn of events, Jeffrey Doctor, 52, and Samuel Baker, 46, both from North Carolina, have been sentenced for their roles in an international money laundering conspiracy involving the smuggling of cut rag tobacco into Canada.

According to court documents, Doctor and Baker worked with co-conspirators to acquire cut rag tobacco from 2013 to 2016. The tobacco was then smuggled into Canada, where it was used to make contraband cigarettes. The defendants sold the cigarettes, making substantial profits by avoiding taxes and duties.

Prosecutors revealed that some of the profits from the contraband cigarettes were used to buy more cut rag tobacco, which was then sent into Canada. The scheme was reportedly facilitated by funds sent from Canada to North Carolina.

Samuel Baker admitted to laundering more than $19 million as part of the scheme and agreed to an administrative forfeiture of $738,442 in proceeds from his crime. He was also fined $100,000. Doctor, on the other hand, admitted to obtaining more than $503,850.66 in unrecovered proceeds, which he agreed to forfeit as a money judgment.

Senior United States District Judge Frederick J. Scullin, Jr. imposed a 2-year term of post-imprisonment supervised release on each defendant. The court also imposed a 30-month prison sentence on Baker and a 14-month prison sentence on Doctor.

Edgar M. Baker, Samuel Baker’s brother, was sentenced to three years of probation and a $75,000 fine for his role in the scheme. Carey Terrance, another co-conspirator, was previously sentenced to time served and to pay a $350,000 fine.

The investigation into the scheme involved the U.S. Attorney’s Office, Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation (IRS-CI), the Canadian Border Services Agency, and the Sûreté du Québec. Assistant U.S. Attorneys Allen J. Vickey and Alexander P. Wentworth-Ping prosecuted the case.

The sentencing marks a significant blow to the tobacco smuggling ring, which had been operating for several years. The scheme’s collapse is a testament to the dedication and hard work of law enforcement agencies involved in the investigation.

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