Life of a Cell: Managerial Practice and Strategy in Colombian Cocaine Distribution in the United States
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The author(s) shown below used Federal funds provided by the U.S. Department of Justice and prepared the following final report: Document Title: Life of a Cell: Managerial Practice and Strategy in Colombian Cocaine Distribution in the United States Author(s): Joseph R. Fuentes Document No.: 194608 Date Received: May 28, 2002 Award Number: 97-IJ-CX-0035 This report has not been published by the U.S. Department of Justice. To provide better customer service, NCJRS has made this Federally- funded grant final report available electronically in addition to traditional paper copies. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. PROPERTY OF National Criminal Justice Reference Service (NCJRS) Box 6000 Rockviiie, hlD 20849-6000 f THE LIFE OF A CELL: MANAGERIAL PRACTICE AND STRATEGY IN COLOMBIAN COCAINE DISTRIBUTION I IN THE UNITED STATES by JOSEPH R. FUENTES A City University of New York doctoral dissertation research 00 project carried out in cooperation with the Drug Enforcement 0 Administration and funded by the National Institute of Justice. CD * 1998 a F This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. THE LIFE OF A CELL: MANAGERIAL PRACTICE AND STRATEGY IN COLOMBIAN COCAINE DISTRIBUTION IN THE UNITED STATES by JOSEPHR.FUENTES A City University of New York doctoral dissertation research project carried out in cooperation with the Drug Enforcement Administration and funded by the National Institute of Justice. 1998 This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. Copyright, 1998 JOSEPH R. FUENTES All Rights reserved This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. This manuscript has been read and accepted for the Graduate Faculty in Criminal Justice in satisfaction of the dissertation requirement for the degree of Doctor of Philosophy. i Date ' Professor Diana R. Gordon, Chair of the Examining Committee p/'- Date messor James P. Levine, Executive Officer n Professor Charles Winick THE CITY UNIVERSITY OF NEW YORK This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. vi i Abstract I THE LIFE OF A CELL: MANAGERIAL PRACTICE AND STRATEGY IN COLOMBIAN COCAINE DISTRIBUTION IN THE UNITED STATES by Joseph R. Fuentes Advisor: Professor Diana R. Gordon Colombian cocaine distribution cells, operating at the highest levels of the cocaine distribution system in the United States, present a formidable challenge to American law enforcement supply reduction efforts. Cells are the distribution arm for a major trafficking organization based in Colombia, are role-specialized, and staffed largely by Colombian illegal aliens bound by strict codes of behavior imposed by the threat of law enforcement. Cell managers are posted to the United States to oversee the flow of thousands of kilos through the larger urban distribution markets. Ethnic closure, secrecy, and a reputation for violence are characteristics which contribute to a lack of scholarly research in this criminal domain. Cells use techniques common to legitimate commodity markets, offering revolving credit to buyers, quantity discounts, and a fair kilo price which represents the local market risks to transport, warehouse, and distribute an illicit product. Cells are the last link in the This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. viii Colombian control over multithousand kilo quantity shipments of cocaine destined for American wholesale and retail markets. In cooperation with the Drug Enforcement Administration, this project utilized a variety of informational sources on Colombian cocaine distribution in the United States. Examined are the cell manager's prerogatives in structuring a domestic distribution cell, worker recruitment practices, the establishment of customer lines, kilo price-setting mechanisms, enforcement of customer agreements and internal discipline, utilitarian motives for violence, and organizational and behavioral responses to law enforcement pressures. Findings of this research suggest a reformulation of some understandings about routine operations of illicit drug distribution and responses to threats posed by drug supply reduction policies. Cells operate with short chains of command that are noncompetitive and nonviolent in the local marketplace. Kilo prices are fairly uniform across organizations until they reach the terminal wholesale distribution market, where local negotiations for price differentials of 1040% are based upon customer preferences and quantity discounts. Cells reduce law enforcement pressures by implementing routine changes to their telecommunications infrastructure. Effective U.S. drug enforcement encourages cartelization in Colombia as individual organizations collude to reduce the risks of importation and transportation. This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. ix ~__ Acknowledgments 1 Iwould like to thank the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), New Yo& Drug Enforcement Task Force (NYDETF), New York City Police-Department(NYPD), New York State Police (NYSP), and the Miami High Intensity Drug Trafficking Area (HIDTA) task force for their assistance and strong endorsement of this project. In particular, I would like to individually recognize the following members of these fine organizations and task forces for their patience, good humor, and guidance as I struggled to gain my footing in understanding the dynamics of the international and domestic Colombian cocaine trade and for assisting me in preparing to interview the primary sample: Special Agent in Charge Jeremiah Doyle, FBIIBuRalo Division; Harold Douglas Wankel, DENChief of Operations (Retired); Assistant Special Agent in Charge William Mockler, DWNew York Division (Retired); Supenrimy Special Agent (SSA) Jerry McArdle, DEA/New York; SSA Michael DeFrancisci, DWNew York; SSA David Tinsley, DWMiami; Special Agent Carlton Starling, DWNew York; Detective First Grade Jerry Speziale, NYPDINYDETF (Retired); Detective Second Grade Steven Peitler, NYPDINYDETF; Senior Investigator Edward Beach, NYSPINYDETF; and Senior Investigator Fred Cabbell, NYSPINYDETF. In acknowledging these individuals, I must add special thanks to Mike DeFrancisci, Steve Peitler, and Dave Tinsley. They were the point men and strategists on the two cocaine trafficking investigations I have highlighted in this dissertation. Each approached This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department. Opinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice. X his work as an artist would a fresh canvas. Despite their frantic schedules, they remained available for my wearisome inquiries and shoved as much faith and interest in this project as I did. Their careers crossed paths at one time or another with Bill Mockler, a brilliant tactician who has enjoyed one of the most celebrated careers at the DEA and was widely regarded as the DEA's top man on matters of Colombian drug trafficking. I was referred to Bill Mockler by DEA Headquarters at the outset of this project. In a local establishment on the lover West Side of Manhattan, Bill pulled a cocktail napkin from under a club soda to sketch out a strategic plan for this research, forewarned me of dangerous curves and precipitous impasses, and assembled a highly talented and motivated staff to assist me. I wish him well in his retirement. The research in this project was supported by a grant from the National Institute of Justice's Graduate Research Fellowship Program. I am grateful to NIJ Director Jeremy Travis for his confidence in the funding of this research and to NIJ Program Director, Kevin Jack Riley, whose acclaimed book, Snow'ob:The War Aaainst International Cocaine Jrafficking, became a worn and much dog-eared reference in this project. Jack is now the Director of the Arrestee Drug Abuse Monitoring Program at NIJ. His burning interest and expertise on matters of the Colombian drug trade were highly contagious. I attribute all positive outcomes in this research to my dissertation committee: my mentor, Diana Gordon, and readers, Robert Kelly and Charles Winick. In spite of their own busy schedules and commitments, they patiently waded through the bits and pieces of the proposal and dissertation that I sent them, were quick to shore me up when my energies waned, and wre gracious in buffering their sound criticisms with encouragement This document is a research report submitted to the U.S. Department of Justice. This report has not been published by the Department.