Federal prosecutors in Manhattan say a former Bureau of Prisons contractor turned her post at FCI Otisville into a six-figure side hustle, taking more than $163,000 in alleged bribes to smuggle drugs and other contraband into the prison. She was arrested Wednesday after a criminal complaint was unsealed in federal court that ties her to a stash of marijuana and loose-leaf tobacco discovered in a prison health services supply room.
According to a press release from the U.S. Attorney’s Office for the Southern District of New York, the complaint charges Terri Lynn Outer, 50, of Montague, New Jersey, with bribery, providing or possessing contraband in prison, and conspiracy to provide or possess contraband in prison. Prosecutors say Outer worked as a dental assistant contractor at FCI Otisville. She was arrested Wednesday and presented before U.S. Magistrate Judge Victoria Reznik.
“The DOJ refuses to tolerate such corruption in our prisons,” U.S. Attorney Jay Clayton said in the office’s statement. DOJ OIG Special Agent in Charge Ryan T. Geach said Outer’s alleged conduct jeopardized the safety and security of the institution and added that the Office of Inspector General would continue working with law enforcement partners to pursue those who abuse their authority.
What the complaint alleges
Prosecutors say that from January 2024 through August 2025, Outer allegedly solicited and received payments from inmates’ family members and associates in exchange for smuggling contraband into the facility, collecting in excess of $163,000 over that period. The government says a search on August 1, 2025, of a Health Services supply room to which Outer had access turned up roughly 3.2 pounds of marijuana and 6.7 pounds of loose-leaf tobacco, evidence the complaint alleges links her to the scheme.
Federal oversight and pattern
The alleged conduct tracks with broader trends flagged in a September 2025 Government Accountability Office review, which identified bribery and contraband smuggling as recurring categories in Bureau of Prisons misconduct investigations and detailed how the OIG, FBI, and U.S. Attorneys coordinate those probes. The Department of Justice Office of Inspector General has continued to open and refer similar cases this year, including recent arrests and guilty pleas tied to bribe-for-contraband schemes.
Legal process and penalties
Outer is charged with one count of bribery, which carries a maximum sentence of 15 years in prison, and two counts related to providing or possessing contraband in prison and conspiracy, each carrying up to five years, according to prosecutors. The White Plains Division of the U.S. Attorney’s Office is prosecuting the case, and Assistant U.S. Attorneys Carmi Schickler and Timothy Deal are assigned to the matter.
The charges are allegations, and Outer is presumed innocent unless and until proven guilty in court.
Investigative partners
Investigators credited the work of the DOJ OIG, the United States Postal Inspection Service’s New York Domicile, FCI Otisville Special Investigative Services, and the New Jersey State Police with bringing the case forward. Court filings and the schedule for Outer’s next court appearance were not immediately available.
