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ARCHIVED Product No. 2007-R0813-014 High Intensity Drug Trafficking Area Drug Market Analysis

June 2007 U.S. Department of Justice

Preface recent law enforcement reporting, information This assessment provides a strategic overview of obtained through interviews with law enforcement the illicit drug situation in the Michigan High Inten- and public health officials, and available statistical sity Drug Trafficking Area (HIDTA), highlighting data. The report is designed to provide policymak- significant trends and law enforcement concerns ers, resource planners, and law enforcement officials related to the trafficking and abuse of illicit drugs. with a focused discussion of key drug issues and The report prepared through detailed analysis of developments facing the Michigan HIDTA region.

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This assessment is an outgrowth of a partnership between the NDIC and HIDTA Program for preparation of annual assessments depicting drug trafficking trends and developments in HIDTA Program areas. The report has been vetted with the HIDTA, is limited in scope to HIDTA jurisdictional boundaries, and draws upon a wide variety of sources within those boundaries. This document may contain dated information. It has been made available to provide access to historical materials. ARCHIVED

Michigan High Intensity Drug Trafficking Area Drug Market Analysis

Strategic Drug Threat Drug Trafficking Organizations, Developments Criminal Groups, and • Methamphetamine production in the Michigan Drug trafficking organizations are complex HIDTA region has declined significantly as a organizations with highly defined command- result of successful law enforcement initiatives, and-control structures that produce, transport, public awareness campaigns, and state-level and/or distribute large quantities of one or more precursor control legislation. Methamphetamine illicit drugs. laboratory incidents1 in Michigan HIDTA coun- Criminal groups operating in the ties decreased 44 percent from 2005 to 2006. are numerous and range from small to moderately sized, loosely knit groups that distribute one or • Clandestinely produced fentanyl, often mixed more drugs at the retail and midlevels. with and sold as heroin, has emerged as a seri- Gangs are defined by the National Alliance of ous drug threat in the Detroit area. At least 212 Investigators’ Associations as groups or fentanyl-related overdose deaths have occurred associations of three or more persons with a in the Detroit area since August 2005. Some common identifying sign, symbol, or name, the abusers knowingly abuse fentanyl, while others members of which individually or collectively unwittingly use it under the impression that it is engage in criminal activity that creates an heroin. The large numbers of overdoses and atmosphere of fear and intimidation. deaths have been a deterrent to some abusers; however, the higher potency of heroin/fentanyl Buren). (See Figure 1 on page 1.) Detroit, Flint, combinations appeals to some heroin abusers in Grand Rapids, and Kalamazoo are the primary the area who seek a more intense euphoric drug markets in the region; they serve as regional effect. distribution centers for many smaller drug markets within the HIDTA region as well as markets in the • Heroin use is increasing throughout Michigan, midwestern and northeastern United States. particularly among young female Caucasian abusers. Some abusers of prescription narcotics Detroit, the largest and most influential drug such as OxyContin substitute heroin when they market in Michigan, is connected to Canada by the have difficulty obtaining pharmaceuticals. Bridge and the Detroit-Windsor Tun- nel. (See Figure 2 on page 3.) The Ambassador •Chaldean2 criminal groups in the HIDTA region Bridge is the world’s busiest commercial border are increasingly distributing MDMA, powder crossing. Illicit drugs, particularly high-potency , crack cocaine, and marijuana. They Canadian marijuana and MDMA (3,4-methylene- also engage in fraud and money laundering dioxymethamphetamine, also known as ecstasy), activities. Metropolitan Detroit is home to the are transported to Detroit from Canada; in return largest Chaldean population outside Iraq, and cocaine and bulk currency derived from U.S. drug this population is expected to grow as additional sales are smuggled back into Canada. Despite Iraqi refugees enter the United States and relo- Detroit’s proximity to Canada and an international cate to the Detroit area. border, most of the cocaine and commercial-grade marijuana available in originates HIDTA Overview in locations at or near the U.S.–Mexico border. Her- The Michigan HIDTA comprises five counties oin is transported to the area from , in eastern Michigan (Genesee, Macomb, Oakland, Chicago, southern California, and Florida. Detroit Washtenaw, and Wayne) and four counties in west- is a regional distribution center for cocaine, mari- ern Michigan (Allegan, Kalamazoo, Kent, and Van juana, heroin, and MDMA, supplying markets

1. Methamphetamine laboratory incidents include seizures of laboratories, dumpsites, and chemicals and equipment. 2. Chaldeans are ethnically Iraqi individuals who practice the Catholic religion.

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National Drug Intelligence Center

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Figure 2. International border between Detroit, Michigan, and Windsor, . throughout Michigan and several other states, the Kalamazoo-Grand Rapids area are transported including Georgia, , Ohio, Pennsylvania, from Chicago and, to a lesser extent, Detroit and the and West Virginia. Southwest Border area. Local drug production, par- ticularly methamphetamine production, also occurs Flint’s location approximately 70 miles north of but has declined significantly as a result of recent Detroit facilitates drug trafficking and gang activity pseudoephedrine sales restrictions, law enforcement within the area. Drug distributors in Flint are typi- initiatives, and public awareness campaigns. Local cally supplied by traffickers in Detroit; however, college students contribute to drug availability and some local distributors have contacts in Chicago abuse by obtaining illicit drugs, primarily MDMA and Southwest Border states from whom they and pharmaceuticals, in their hometowns and bring- directly purchase wholesale quantities of drugs. ing them back to the Kalamazoo-Grand Rapids area for limited distribution and personal use. Grand Rapids and Kalamazoo are located in southwestern Michigan, midway between Detroit and Chicago. Most of the illicit drugs available in

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Michigan High Intensity Drug Trafficking Area Drug Market Analysis

Drug Threat Overview heroin or cocaine, posed a serious drug threat in the Cocaine, particularly crack cocaine, poses the Detroit area in late 2005 and in 2006. most significant drug threat in the Michigan HIDTA region; the distribution and abuse of the drug have a Drug Trafficking profound impact on law enforcement and public Organizations health resources. Crack cocaine conversion typically African American drug trafficking organiza- occurs in urban areas of the HIDTA region. Crack tions (DTOs) and criminal groups are the predomi- cocaine abusers often commit crimes such as bur- nant traffickers in the HIDTA region. They glary, robbery, theft, and retail fraud to obtain the distribute wholesale quantities of cocaine, mari- drug, while distributors commit assault and homi- juana, and heroin and are also emerging as distribu- cide to control their local drug markets and protect tors of MDMA that they obtain from Canada. their trafficking operations. Methamphetamine pro- Some of these African American traffickers have duction, previously a significant threat in western made direct connections with Mexican sources and HIDTA counties, significantly declined during 2006, are transporting drugs directly from Southwest largely as a result of statewide legislation enacted in Border states into Michigan. African American dis- December 2005 restricting the sale of and access to tributors in the HIDTA region also engage in drug- products containing pseudoephedrine and ephedrine related violence, including assault and homicide, to as well as directed law enforcement and public maintain control of local drug markets. awareness campaigns. Accordingly, methamphet- amine laboratory incidents in HIDTA counties Mexican, Caucasian, Asian (usually Vietnam- decreased approximately 44 percent in 2006. ese), and Middle Eastern (typically Chaldean, Leb- anese, and Yemeni) DTOs and criminal groups also The trafficking and abuse of other drugs, such as distribute wholesale quantities of drugs in the heroin, marijuana, MDMA, and pharmaceuticals, pose persistent threats within the HIDTA region as Iraqi Refugees Likely to Relocate to well. The availability and abuse of heroin appear to Metropolitan Detroit be increasing in the Detroit and Flint areas, particu- Metropolitan Detroit, home to the largest larly among young Caucasian abusers. Heroin abuse population of Chaldeans outside Iraq, may be among high school students in the Kalamazoo area gaining an even larger Chaldean population. The also appears to be increasing. Law enforcement offi- U.S. government plans to allow 7,000 additional cials estimate that approximately 70 percent of heroin Iraqi refugees into the country within the next seized in the HIDTA region is South American (SA), year, a significant increase over the 466 Iraqis 25 percent is Southwest Asian (SWA), and the who have been permitted entry into the United remainder is Mexican and, to a very limited extent, States since the beginning of the War in Iraq in Southeast Asian (SEA). Marijuana is readily avail- 2003. According to estimates by the Chaldean able and widely abused; commercial-grade Mexican Federation of America, at least 60 percent of the 7,000 Iraqi refugees will move to Michigan. marijuana is the most prevalent type in the region, Chaldean criminals in Detroit are distributing but high-potency Canadian and locally produced Canadian MDMA, Mexican marijuana, and marijuana are also available. Canadian marijuana and powder cocaine and crack cocaine that they MDMA transit the Detroit area destined for other purchase from other criminal groups. Some U.S. drug markets; however, some is retained in the Chaldean criminals own gas stations and HIDTA region for local distribution and abuse. convenience stores throughout the Detroit area, Diverted pharmaceuticals such as fentanyl, hydro- from where they operate wire remittance service codone, methadone, OxyContin, Vicodin, and Xanax businesses, which they reportedly use to are also abused in the region. Fentanyl, clandestinely launder illicit proceeds. produced in Mexico and often mixed with and sold as Source: U.S. Department of State; .

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National Drug Intelligence Center

HIDTA region to varying degrees. Law enforce- Family Cocaine ment officials have identified 118 ethnically based Distribution in Detroit DTOs that operate within the Michigan HIDTA In March 2007 the U.S. Attorney for the Eastern region; approximately 28 of these DTOs operate District of Michigan announced the indictments internationally, 42 operate in multiple states, and of 17 individuals resulting from a 7-year 51 operate locally. Mexican DTOs distribute investigation of , a suspected wholesale quantities of marijuana and powder multistate cocaine trafficking organization. Since cocaine. Caucasian and Middle Eastern DTOs dis- late 2006 a total of 58 individuals have been tribute wholesale quantities of marijuana and pow- indicted on charges of conspiracy to distribute der cocaine. Asian DTOs and East Indian truck cocaine and money laundering. Black Mafia drivers, whom the DTOs employ as transporters, Family allegedly distributed multikilogram often smuggle Canadian marijuana and MDMA quantities of cocaine in the Detroit metropolitan into the HIDTA region for local and national distri- area beginning in the early 1990s. By the mid- bution. Various groups also transport MDMA into 1990s, the organization’s distribution activities had extended into other states, including and through HIDTA counties, including Caucasian Kentucky, Georgia, , California, and college students who travel to Canada to purchase Texas. During the course of the investigation, MDMA for personal use and limited distribution. law enforcement authorities seized approx- Middle Eastern DTOs distribute Canadian and imately 1,100 pounds of cocaine and $19 million Mexican marijuana and MDMA, especially in the in assets, including bank accounts, cash, real Detroit area, where they operate many gas stations property, jewelry, and vehicles. In addition, Black and convenience stores from which they are sus- Mafia Family members allegedly used drug pected of selling pseudoephedrine to methamphet- proceeds to purchase winning Michigan lottery amine producers, circumventing recent precursor tickets from an individual who had obtained control legislation. In addition to drug trafficking, them from the true winners for cash. These some criminal organizations smuggle weapons and winning tickets, valued at over $1 million, illegal aliens when the opportunity arises. redeemed, and the proceeds were used to purchase homes and vehicles and to make mortgage payments. Numerous gangs and outlaw motorcycle gangs (OMGs) operate in the HIDTA region, includ- Source: U.S. Attorney Eastern District of Michigan. ing approximately 10 large gangs in Detroit. Many of these street gangs and OMGs are involved in ille- Production gal drug distribution and commit violent crimes Illicit drug production in the Michigan HIDTA such as assault, robbery, and homicide to protect region is typically limited to crack cocaine conver- illicit drug operations. Street gangs in the HIDTA sion, small-scale methamphetamine production, region typically are turf-oriented neighborhood and cannabis cultivation. gangs; however, some are nationally affiliated, such as Black Mafia Family. Street gangs often distribute Crack cocaine conversion is a significant concern, cocaine, heroin, and marijuana at the retail level. particularly in the urban areas of the HIDTA region, Some Michigan street gangs are recruiting new where it is associated with high levels of abuse, prop- members as young as 13 to 15 years of age to sell erty crime, and related violence. Retail-level crack crack and marijuana to their peers. OMGs within the cocaine distributors, generally , HIDTA region also distribute drugs such as meth- convert powder cocaine to crack at various locations, amphetamine, marijuana, cocaine, MDMA, Oxy- including private residences and hotel rooms. Once Contin, and Vicodin. Many of these OMGs are powder cocaine has been converted to crack cocaine, affiliated with national and international OMGs and distribution occurs, typically in small quantities in the typically engage in other criminal activities, includ- neighborhoods where the drug was converted. ing promoting prostitution and committing theft, fraud, homicide, arson, and weapons trafficking.

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Michigan High Intensity Drug Trafficking Area Drug Market Analysis

Methamphetamine production occurs primarily deter anhydrous ammonia thefts: “Chemical Lock” in rural areas of the HIDTA region; however, some (the addition of calcium nitrate to anhydrous ammo- laboratory operators also use hotel rooms in more nia) reportedly reduces methamphetamine produc- populated areas, such as Kalamazoo. Law enforce- tion from a typical yield of 42 percent to approx- ment initiatives and state-level precursor control leg- imately 2 percent. islation enacted in December 2005 contributed to a 44 percent decrease in methamphetamine laboratory Most of the marijuana available in the HIDTA incidents in HIDTA counties from 2005 to 2006. (See region is produced in Mexico or Canada, but some is Figure 3 on page 7.) Remaining methamphetamine grown locally at both outdoor and indoor grow sites. laboratories are operated primarily by Caucasian and, Outdoor cultivation often occurs on state-owned to a lesser extent, Mexican local independent produc- property, on other property not owned by the grower, ers for personal use, producing only a few grams of and in fields among legitimate crops. Indoor cultiva- methamphetamine per production cycle. Producers tion generally takes place in private residences frequently change laboratory locations, a practice that owned or rented by African American and Caucasian is problematic for law enforcement, especially when independent growers; high-potency marijuana is typ- methamphetamine cooks cross county lines. Meth- ically produced at these sites for local distribution. amphetamine production poses significant danger to individuals, property, and the environment. Labora- Transportation tory operators and other individuals near metham- The diverse transportation infrastructure of the phetamine laboratory sites, often children, are Michigan HIDTA region is exploited by DTOs to harmed during the production process or as a result of transport drugs into and through the region from laboratory fires and explosions. Moreover, law source areas in Mexico and Canada. Private and enforcement personnel and first responders can be commercial vehicles are used by traffickers to trans- injured during a laboratory seizure or when respond- port drugs along Interstates 94, 75, and 69 and U.S. ing to an emergency situation involving a laboratory. Route 23 into and through the region; traffickers also Child abuse and neglect are also common when employ couriers on trains, buses, and private and guardians produce methamphetamine. Improper stor- commercial aircraft to transport illicit drugs. Illicit age and disposal of chemicals and chemical waste drugs transported in passenger vehicles are often involved in the production of methamphetamine placed in hidden compartments; drugs transported in often result in severe environmental damage and commercial vehicles generally are placed in hidden costly soil and structure remediation. compartments or commingled with legitimate prod- ucts such as produce, car parts, building materials, or Law enforcement initiatives and other programs heavy machinery. Some criminals also ship mari- that the availability of precursor and juana, cocaine, and MDMA through the U.S. Postal essential chemicals used in the methamphetamine Service and parcel delivery services in order to production process have contributed to decreased reduce transportation costs and increase profits. laboratory seizures in the HIDTA region. For example, Kalamazoo-Grand Rapids area law Michigan’s common border with Canada offers enforcement officials have conducted surveillance traffickers numerous opportunities to transport mari- of tanks containing anhydrous ammonia, a juana and MDMA from Canada into the HIDTA common farm fertilizer used in methamphetamine region. The Ambassador Bridge is the main North production. Law enforcement surveillance, the use of American trade link between the United States and 3 GloTell, and related media coverage have resulted in Canada, handling more than $206 billion in cross- fewer anhydrous ammonia thefts. Additionally, a border commodities annually and providing a major new chemical additive has been developed to further conduit for drug transportation from Canada into the

3. GloTell is a chemical additive that stains potential anhydrous ammonia thieves as well as any methamphetamine produced with treated anhydrous ammonia, making theft less appealing.

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250 218

200 182

150 138 135 122

100

Number of Incidents 50

0 2002 2003 2004 2005 2006 Year

Figure 3. Methamphetamine laboratory incidents in Michigan HIDTA Counties, 2002–2006. Source: National Clandestine Laboratory Seizure System, data run on 4/4/07. United States; it is the world’s busiest commercial also transport wholesale quantities of SA heroin, border crossing and North America’s busiest inter- methamphetamine and, to a lesser extent, Mexican national border crossing. More than 13,000 trucks brown powder and black tar heroin into the region. and 25,000 automobiles cross the Ambassador Bridge daily. The Detroit-Windsor Tunnel is also a Asian (often Vietnamese) DTOs and East heavily used point of entry from Canada into the Indian truck drivers (who are employed by Asian United States, handling over 27,000 vehicles daily. DTOs) and, to a lesser extent, eastern European Large quantities of Canadian marijuana and DTOs transport wholesale quantities of high- MDMA are routinely seized as traffickers attempt potency Canadian marijuana and MDMA into the to transport these drugs from Canada into the area; on their return trips, these DTOs often smug- United States through Detroit. (See Table 1.) Addi- gle powder cocaine and money derived from sales tionally, there are approximately 950,000 registered in U.S. drug markets into Canada. watercraft in Michigan and 1.4 million registered watercraft in Ontario, Canada, some of which are Table 1. Marijuana and MDMA Seizures at the used to transport illicit drugs across the border, usu- Detroit POE, in Kilograms, 2004–2006 ally in remote areas. Year Marijuana MDMA

African American and Mexican DTOs are the 2004 1,034.2 15.0 principal transporters of cocaine and commercial- grade marijuana into and through the Michigan 2005 2,543.2 79.4 HIDTA region, particularly from source areas in 2006 1,373.0 367.1 Mexico and states such as Arizona, California, Source: U.S. Customs and Border Protection. Florida, Illinois, and Texas. Mexican traffickers

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Michigan High Intensity Drug Trafficking Area Drug Market Analysis

and in an effort to circumvent law Technology Assists enforcement pressure in Chicago. in Border Seizures Law enforcement agencies use various high- technology tools to detect illicit drug shipments Distribution entering the HIDTA region, particularly from The Michigan HIDTA region, especially Canada. Law enforcement officials use Mobile Detroit, serves as a distribution center for drug VACIS®, a nonintrusive gamma ray imaging markets in Michigan and other states, including a system, to scan large vehicles such as tractor- Ohio, Pennsylvania, Tennessee, and West Virginia. trailers that are used by traffickers to transport However, significant amounts of illicit drugs trans- illegal drugs across the U.S.–Canada border. ported to the HIDTA region remain in the area for VACIS has resulted in numerous seizures, local distribution. DTOs distribute both wholesale including the detection of approximately 600,000 MDMA tablets found in a hidden compartment in and retail quantities of illicit drugs throughout the a truck in December 2006; this was the largest HIDTA region, with particular groups dominating MDMA seizure ever in the Detroit area. each drug market. In Detroit, for example, African American DTOs and criminal groups control most Source: Drug Enforcement Administration. wholesale drug distribution, particularly of powder a. The Mobile VACIS inspection system consists of a truck- cocaine, heroin, and marijuana; however, Mexican, mounted, nonintrusive gamma ray system that produces images that Caucasian, and Middle Eastern criminal groups are used to search vehicles and cargo for the purpose of identifying also distribute illicit drugs at the wholesale level in contraband, including illicit drugs and explosive materials. The Mobile VACIS system utilizes gamma rays as opposed to x-rays, the city. Much of the wholesale drug distribution in which allows for a lower operating cost, smaller operating space, the Flint area, including distribution of powder safer operations, and better system reliability. cocaine and heroin, is controlled by Mexican and African American criminal groups. Drug distribu- Traffickers also transport other illicit drugs into tion in the Kalamazoo-Grand Rapids area is con- the HIDTA region. African American and Middle trolled by Mexican, African American, and Eastern traffickers transport SWA heroin and very Caucasian criminal groups. limited quantities of SEA heroin into the region, predominantly from New York City. Independent Retail-level drug distribution occurs throughout African American and Caucasian dealers and the Michigan HIDTA region. African American Michigan college students transport MDMA from criminal groups are the primary retail-level distrib- Canada into the region. Additionally, local Cauca- utors of crack cocaine and heroin throughout the sian abusers transport pharmaceutical drugs, which area; they also distribute retail-level quantities of they obtain from doctor-shopping in neighboring marijuana in urban areas within the HIDTA region, states, into their home communities. but to a lesser extent. Drug sales at the retail level, especially of crack cocaine, often occur in private Various DTOs, criminal groups, and indepen- homes, however, some street sales take place in dent dealers from the region and neighboring areas inner-city areas, and other sales occur at prear- transport most of the drugs available in the Flint area ranged sites. For example, some local dealers from Detroit and most of the drugs available in the accommodate suburban crack cocaine abusers who Kalamazoo-Grand Rapids area from Detroit or are uneasy about traveling to inner-city areas to Chicago. Recently, some Chicago-based criminal purchase the drug. Retail-level distribution also groups have altered their methods to bypass Chicago takes place in public bars, , and hotel and I-94, the most direct route to Michigan, when rooms throughout the Michigan HIDTA region. transporting illicit drugs from the Southwest Border area to the Kalamazoo-Grand Rapids area. These African American criminal groups are the pri- groups now travel through , Columbus, mary retail-level distributors of most illicit drugs in

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National Drug Intelligence Center

the HIDTA region, particularly crack cocaine, heroin, commit crimes such as retail fraud, burglary, rob- and marijuana. African American criminal groups are bery, and theft to obtain drugs or money to pur- also emerging as retail MDMA distributors in the chase drugs. Methamphetamine producers, often region. Other criminal groups also distribute illicit Caucasians, steal precursor chemicals, while meth- drugs at the retail level within particular areas of amphetamine abusers commit larceny, identity the HIDTA. In Detroit, Mexican criminal groups theft, and theft from their parents and/or grandparents distribute marijuana, cocaine, and heroin. Chaldean to acquire money to purchase the drug. Moreover, criminals in Detroit distribute Canadian MDMA, some methamphetamine abusers steal credit card Mexican marijuana, and cocaine. A Russian crimi- applications from mailboxes, complete them with nal group in Detroit has been involved in the distri- stolen personal information, obtain fraudulent credit bution of OxyContin, MDMA, and other club cards, and use the credit cards to secure drug funds. drugs; more recently, this criminal group has been marketing nitrous oxide to youth in the area. In the Violence among crack distributors is increasing, Flint area, Mexican and Caucasian criminal groups particularly in the Flint area, as aspiring, younger are retail distributors of cocaine, heroin, marijuana, crack distributors engage in violent drug and mone- and MDMA. Heroin distribution in Flint is increas- tary thefts from established dealers. Previously, ing, largely because distributors know that they can aspiring distributors worked for established drug make a larger profit through heroin distribution and distributors as runners or lookouts, eventually that the penalty associated with such trafficking is becoming distributors themselves. However, many less than that for crack cocaine distribution. Col- young distributors are now unwilling to “work their lege students from the local area and around the way up,” resorting instead to theft and violence to state often gather in the Flint area to distribute advance their own drug operations. Many young MDMA in local bars and clubs that promote “col- dealers steal drugs from one another; some associ- lege nights” on the Internet and on local campuses. ate with other drug dealers and study their opera- Various MDMA dealers track these promotions and tions to learn when the dealers will have a large also distribute the drug to student attendees. amount of money or drugs, subsequently robbing According to law enforcement officials, the bars them. Violent, drug-related “rip-offs” also take and clubs generate increased revenue from drink place, typically when an established, higher-level purchases and cover charges but do not profit dealer purports to have drugs available for sale and, directly from drug distribution. In the Kalamazoo- rather than delivering the drugs in exchange for Grand Rapids area, Mexican and Caucasian crimi- cash from a lower-level dealer, steals the money. nal groups distribute cocaine, heroin, marijuana, Some individuals, fearing recognition and retalia- MDMA, and methamphetamine at the retail level. tion, murder the drug dealers that they rob. This Various criminal groups, independent dealers, and trend of violence and theft is likely to result in abusers distribute diverted pharmaceutical drugs in increased retaliatory violence against such drug most areas of the HIDTA region. dealers in the near term.

Drug-Related Crime Abuse Drug-related violent and property crime often Marijuana is the most widely available and occurs within the HIDTA region as distributors abused illicit drug in the Michigan HIDTA region; protect their distribution operations, and abusers however, the distribution and abuse of cocaine are seek funds to sustain their addictions. Cocaine, her- the most significant drug-related concerns to law oin, and marijuana distributors often commit vio- enforcement officials because of cocaine’s wide- lent crimes including assault and homicide to spread availability, low cost, highly addictive maintain control of local drug markets. Cocaine, nature, and association with violence. Crack heroin, and diverted pharmaceutical abusers often cocaine is more prevalent in urban areas, where it is

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Michigan High Intensity Drug Trafficking Area Drug Market Analysis

abused by African American users; powder cocaine or scanned prescriptions, and unscrupulous physi- is more prevalent in suburban areas, where it is gen- cians. Some abusers communicate on the Internet erally abused by Caucasian and Hispanic users. to obtain pharmaceuticals. Others converse in doc- tors’ waiting rooms to identify doctors who write Heroin abuse is increasing among young subur- illegal prescriptions; some abusers will provide a ban and rural Caucasians, particularly women, as doctor’s name to other abusers for $100. Some more individuals appear to be engaging in casual use doctors are increasingly prescribing methadone, by snorting the drug. In Flint suburban Caucasian sometimes as a replacement for OxyContin to deter abusers travel to the city to purchase quantities that law enforcement scrutiny and other times as a will last 3 to 4 days. Some heroin initiates previously result of pressure from drug companies to prescribe abused prescription narcotics such as OxyContin and methadone for conditions other than opiate addic- switched to heroin after having difficulty obtaining tion. Diverted methadone is a particular concern the pharmaceuticals. Many heroin abusers who initi- for public health officials in the region; since the ated use of the drug through inhalation or after using effects of the drug occur at a slower rate than those prescription narcotics have progressed to intravenous of other narcotics, abusers sometimes increase the heroin abuse after becoming addicted to the drug. dosage in order to feel the effects more quickly, However, some newer abusers have been intimidated often leading to an overdose. Diverted Vicodin is by the outbreak of overdoses and deaths associated available in the HIDTA region at “pill houses” in with heroin/fentanyl combinations and are more cau- small amounts as well as in large quantities of tious when purchasing heroin. SA heroin is the most 30,000 to 40,000 dosage units. commonly abused type of heroin in the area, but Southwest Asian heroin, Mexican brown powder and Fentanyl has become a major concern for law black tar heroin and, occasionally, SEA heroin are enforcement and public health officials in the abused as well. Mexican heroin is becoming increas- HIDTA region after a May 2006 outbreak of fatal ingly prevalent in the Grand Rapids area. and nonfatal overdoses related to clandestinely pro- duced fentanyl mixed with heroin or cocaine. Fent- Methamphetamine abuse is a concern, anyl is available in the region as clandestinely particularly in the western HIDTA counties, where produced powder and in prescription patches, loz- the highest levels of abuse occur. Methamphet- enge suckers, tablets, and liquid injections. At least amine is generally smoked and snorted by Cauca- 212 fentanyl-related overdose deaths have occurred sian and Hispanic male abusers, who also produce in the Detroit area since August 2005. Media atten- the drug locally. tion regarding fentanyl-related overdoses has intimidated some drug abusers but caused some to Rising MDMA availability in the region has seek out the drug. However, some abusers unwit- resulted in an increase in the drug’s popularity tingly use heroin/fentanyl combinations or cocaine/ among high school and college students. Large fentanyl combinations because they are marketed “rave-style” gatherings previously associated with to them as a single drug. MDMA are rare; however, smaller parties continue to occur within the HIDTA region. Most of MDMA High school and college age students abuse a available in the HIDTA region originates in Canada variety of drugs, including marijuana, heroin, and and often contains some methamphetamine. pharmaceutical drugs. “Pharming parties,” typically held at residences, are events at which adolescents Diverted pharmaceuticals, particularly fenta- and young adults bring a variety of drugs that they nyl, hydrocodone, methadone, OxyContin, Vico- have been able to obtain, most often pharmaceuti- din, and Xanax, are obtained by abusers in the cals. The drugs are placed into a large bowl and HIDTA region through various means, including mixed. Thereafter, attendees indiscriminately take doctor-shopping, theft, forged prescriptions, copied several drugs from the bowl and simultaneously

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ingest them. Young abusers in the region also Outlook experiment with various other drugs, including Local methamphetamine production in the morning glory seeds and dextromethorphan (the Michigan HIDTA region is likely to further decrease 4 abuse of which is known as robotripping ). Addi- with continued law enforcement pressure, pseudo- tionally, young abusers in Detroit are increasingly ephedrine sales restrictions, and preventive products experimenting with nitrous oxide that is supplied to (including GloTell and Chemical Lock). In the near them by Russian criminal groups. term, it is likely that Mexican traffickers will sup- plant the decline in local production by supplying Illicit Finance methamphetamine that they produce in Mexico. Bulk cash shipments, money services busi- nesses (MSBs), and front businesses are the primary Heroin use among young, middle-class Cauca- methods used by traffickers to move and launder sians, particularly females, is likely to further increase illicit drug proceeds in the HIDTA region to drug as prescription narcotics abusers substitute heroin source locations; however, the particular money when they have difficulty obtaining pharmaceuticals. laundering typology used often depends upon the Compounding this problem will be rising casual her- trafficking group. Mexican and Canada-based oin use among middle-class Caucasians. These abus- DTOs and criminal groups use private and commer- ers, who typically have stable employment and health cial vehicles to transport bulk cash shipments to insurance, will increasingly seek treatment, poten- source locations, often in the same conveyances tially straining local drug treatment facilities. used to ship drugs into the region. Mexican DTOs also send wire transfers and smurf 5 money orders The availability of clandestinely produced fent- through MSBs to move currency to source areas anyl in the HIDTA region will decrease signifi- along the Southwest Border and into Mexico. Afri- cantly, a result of the 2006 seizure of a laboratory can American DTOs and criminal groups often pur- in Toluca, Mexico, that had produced the fentanyl chase cash-intensive front businesses such as car supplied to the HIDTA region. As a result, the washes, clothing stores, and hair and nail salons number of overdoses and deaths associated with through which they commingle legitimate and illicit heroin/fentanyl combinations and cocaine/fentanyl proceeds. Some local African American criminal combinations will continue to decrease from their groups launder money through recording compa- peak in mid-2006. However, if a new source of nies. Additionally, law enforcement officials report clandestinely produced fentanyl emerges, traffick- that members of Black Mafia Family purchase win- ers will almost certainly make the drug available in ning lottery tickets as a means to launder illicit pro- heroin and cocaine markets in the HIDTA region, ceeds. Middle Eastern criminal groups operate resulting in a new of overdoses and deaths. convenience stores and, to a lesser extent, operate wire remittance service businesses to launder illicit Criminal activities currently associated with the proceeds. Some Middle Eastern criminal groups, Chaldean criminals, particularly drug distribution, primarily Chaldean, launder money through third- fraud, and money laundering, may increase in the party checks or become loan sharks for gamblers in Michigan HIDTA region during the coming year order to launder illicit funds. Various lower-level because several thousand Iraqi refugees (including traffickers launder money through . Many some Chaldeans) are likely to relocate to the retail-level traffickers purchase expensive items, Detroit area. including automobiles and jewelry, to dispose of illicit funds.

4. Robotripping is a street term used to describe the effects produced by the abuse of Robitussin, which contains dextromethorphan. 5. Smurfing is a technique whereby large amounts of cash are divided into smaller amounts to avoid Bank Secrecy Act filing requirements and then deposited or wired.

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Sources

Local, State, and Regional Detroit Police Department Flint Police Department Kalamazoo Valley Enforcement Team State of Office of Drug Control Policy State of Michigan Department of Community Health State Police Eastern Region Special Investigation Division Violent Crimes Investigative Section Field Operations Division Hometown Security Teams Intelligence Section Western Wayne Criminal Investigations Southeastern Criminal Investigation Division Federal Executive Office of the President Office of National Drug Control Policy High Intensity Drug Trafficking Area Michigan The National Alliance for Model State Drug Laws 2007 National Alliance for Model State Drug Laws U.S. Department of Health and Human Services National Institutes of Health National Institute on Drug Abuse Community Epidemiological Work Group Substance Abuse & Mental Health Services Administration U.S. Department of Homeland Security U.S. Coast Guard Field Intelligence Support Team U.S. Customs and Border Protection U.S. Immigration and Customs Enforcement North Central Field Intelligence Unit U.S. Department of Justice Drug Enforcement Administration Detroit Field Division Detroit Field Office Grand Rapids Field Office

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Saginaw Field Office El Paso Intelligence Center National Clandestine Laboratory Seizure System Office of Diversion Control Federal Bureau of Investigation U.S. Attorney’s Office Eastern District of Michigan U.S. Department of State Office of the Under Secretary for Democracy and Global Affairs Other The Ambassador Bridge Detroit Free Press Detroit News Hazelden: Drug Abuse Trends in /St. Paul December 2006

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319 Washington Street 5th Floor, Johnstown, PA 15901-1622 • (814) 532-4601 NDIC publications are available on the following web sites: INTERNET www.usdoj.gov/ndic ADNET http://ndicosa RISS ndic.riss.net LEO https://cgate.leo.gov/http/leowcs.leopriv.gov/lesig/ndic/index.htm 062007

This document may contain dated information. It has been made available to provide access to historical materials.