Drug Money Laundered by 2 Berks Businesses

Undercover agent paid the business co-owner $20,000 in 2008.

A Maryland man has pleaded guilty to laundering drug money through two Berks County businesses, according to published reports.

Todd D. Lubar, 39, admitted to laundering drug money through two businesses he co-owned: Reading-based Scrap USA, and a Birdsboro-based demolition company- Red Rock Service Co. LLC, according to the Reading Eagle.

The newspaper reports that Lubar was first approached by an undercover agent in April, 2008, who posed as a businessman hoping to launder money for three Washington-area drug dealers.  The agent paid Lubar $20,000 that June, and sought $25,000 in laundered cash by the end of that same year, the Reading Eagle reports.

Lubar told the agent that the money could be laundered through Scrap USA because the company bought and sold metal with cash, according to the newspaper. Company officials told the paper that the company is “100 percent clean.” Lubar voluntarily resigned in 2009 after the investigation surfaced, the newspaper reported on Tuesday.

Lubar will face sentencing in October. The three Washington-area drug dealers involved in the bust have all previously pled guilty.
 

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