Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

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ARCHIVED Product No. 2007-R0813-004 Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

June 2007 U.S. Department of Justice

Preface reporting, information obtained through interviews This assessment provides a strategic overview with law enforcement and public health officials, of the illicit drug situation in the Washington/Balti- and available statistical data. The report is designed more (W/B) High Intensity Drug Trafficking Area to provide policymakers, resource planners, and (HIDTA), highlighting significant trends and law law enforcement officials with a focused discus- enforcement concerns relating to the trafficking and sion of key drug issues and developments facing abuse of illicit drugs. The report was prepared the W/B HIDTA. through detailed analysis of recent law enforcement

PENNSYLVANIA

NEW MARYLAND JERSEY NY WEST BALTIMORE BALTIMORE CITY NY VIRGINIA CT OH PA HOWARD NJ

MD MONTGOMERY ANNE LOUDOUN ARUNDEL WV DE

ARLINGTON VA D.C. FA IRFA X CIT Y FA IRFA X PRINCE MANASSAS GEORGE’S NC Washington/ Baltimore PRINCE HIDTA Region WILLIAM CHARLES DELAWARE ALEXANDRIA

C P o h MARYLAND to e VIRGINIA ma s c River a p e a

HANOVER VIRGINIA RICHMOND CITY

HENRICO CHESTERFIELD HOPEWELL

PRINCE COLONIAL HTS. GEORGE PETERSBURG HIDTA County

Figure 1. Washington/Baltimore High Intensity Drug Trafficking Area.

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

Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

Strategic Drug Threat Drug Trafficking Organizations, Developments Criminal Groups, and Gangs • Methamphetamine abuse is increasing in the Drug trafficking organizations are complex region, particularly among adolescents in north- organizations with highly defined command-and- ern Virginia and teenagers, young adults, and control structures that produce, transport, and/or homosexual males involved in the club scene in distribute large quantities of one or more illicit the Washington, D.C., area. However, the over- drugs. all demand for methamphetamine in the W/B Criminal groups operating in the United States HIDTA region is relatively low, far less than the are numerous and range from small to demand for cocaine and heroin. moderately sized, loosely knit groups that distribute one or more drugs at the retail and • Mexican drug trafficking organizations (DTOs) midlevels. are increasing their drug trafficking activities in Gangs are defined by the National Alliance of the W/B HIDTA region. Mexican DTOs and Gang Investigators’ Associations as groups or criminal groups already supply most of the mar- associations of three or more persons with a ijuana available in the area. Further, they are common identifying sign, symbol, or name, the increasingly transporting cocaine into the region members of which individually or collectively as well as transporting large quantities of meth- engage in criminal activity that creates an amphetamine into the Shenandoah Valley area atmosphere of fear and intimidation. of Virginia, adjacent to the HIDTA region. the Richmond metropolitan area. The region includes • Midlevel and retail drug traffickers are using the following city and county jurisdictions: Maryland various techniques to gain market share in the (the city of Baltimore and Anne Arundel, Baltimore, region, including providing free heroin, using Charles, Howard, Montgomery, and Prince George’s brand names to establish repeat customers and, Counties), northern Virginia (the city of Alexandria as evidenced by the rise in incidents involving and Arlington, Fairfax, Loudoun, and Prince William heroin/fentanyl combinations reported in 2006, Counties), the Richmond metropolitan area (the cities offering “hot bags” of heroin combined with of Chesterfield, Colonial Heights, Hopewell, Peters- fentanyl to increase potency. Fentanyl was burg, and Richmond and Hanover, Henrico, and linked to at least 36 fatal overdoses in Maryland Prince George Counties), and Washington, D.C. and 23 in Virginia in 2006. Economic, demographic, and transportation • Abuse of powder and crack cocaine is increas- factors render the W/B HIDTA region an increasing among young Caucasian professionals, blue- ingly fertile environment for drug trafficking and collar workers, and students in small cities, abuse. Many areas of the region are in the midst of towns, and rural areas in the W/B HIDTA region. an economic boom, resulting in population growth and increasing levels of disposable income for • The demand for marijuana in the W/B HIDTA abusers to spend on drugs. At the same time, some region is high and increasing. Marijuana is areas, such as inner-city Baltimore, Richmond, and abused by every ethnicity, socioeconomic group, Washington, remain economically depressed, lead- and age group. The popularity of high-potency ing some residents to view drug trafficking as the marijuana, especially among younger abusers, is only means of financial gain and drug abuse as a a key factor in driving the growth in demand. form of escape. Revitalization efforts in Washing- ton, D.C., have included the demolition of several HIDTA Overview public housing projects, resulting in the dispersion The W/B HIDTA region encompasses four dis- of drug- and gang-related problems to suburban tinct population centers—the Baltimore Metropolitan areas, particularly in Maryland. Between 1990 and Area, the District of Columbia, northern Virginia, and 2000 (the year of the latest census), the population

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National Drug Intelligence Center

of the W/B HIDTA region increased at approxi- Marijuana is the most widely available and abused mately the national rate and became more ethni- drug in the region. Most of the marijuana available is cally and racially diverse; these demographic trends Mexican commercial-grade; however, high-potency have continued since 2000. In particular, a dramatic Canadian marijuana is becoming increasingly avail- increase in the Hispanic population has enabled able in parts of the region, such as Fairfax County, Colombian, Dominican and, increasingly, Mexican, Virginia; Montgomery County, Maryland; and Balti- Guatemalan, and Salvadoran criminal groups and more. High profits and low risk associated with the gangs with ties to drug source and transit countries distribution of marijuana are fueling an expansion of to operate more easily. Drug trafficking in the marijuana trafficking operations in the Baltimore region is facilitated by an extensive transportation area, and law enforcement agencies report that infrastructure that includes highways—Interstate cocaine dealers are now distributing marijuana. The 95, in particular—railway and bus systems, two distribution and abuse of MDMA (3,4-methylene- international seaports, and four international air- dioxymethamphetamine, also known as ecstasy) are ports with passenger and cargo services. decreasing as a result of an increased demand and preference for marijuana. Diverted pharmaceuticals, Drug Threat Overview particularly prescription narcotics such as OxyContin Most illicit drugs transported into the W/B (oxycodone), are increasingly abused by young, afflu- HIDTA region are abused locally. While distribu- ent suburbanites who acquire the drugs from friends tion and abuse of heroin (primarily South Ameri- and family and through doctor-shopping. Reporting can (SA) heroin) is the principal drug threat to the from treatment providers indicates that diverted pre- city of Baltimore, crack cocaine poses the greatest scription narcotics initially provide an alternative to threat to the rest of the region. A multitude of fac- heroin for abusers who view heroin use as too risky. tors associated with heroin and crack cocaine, par- Once addicted, however, many of these individuals ticularly violent crime associated with the “graduate” to heroin abuse because of wider availabil- trafficking of cocaine (primarily crack), severely ity and lower prices. The abuse of PCP (phencycli- tax law enforcement resources in the HIDTA dine), rare in most areas of the country, is emerging in region. Equally taxing to public health resources in some suburban areas in the HIDTA region but is most the HIDTA region are the social and health conse- prevalent in Washington, D.C., where abusers add the quences of cocaine and heroin abuse, which is mul- drug to marijuana cigarettes for a more intense effect. tigenerational in some areas. For example, in Similarly, khat, rarely found in other areas of the Baltimore both parents and children are enrolling country, is available in the W/B HIDTA region, which in heroin abuse treatment programs. Furthermore, is home to relatively large East African and Yemeni the abuse of heroin, particularly by injection, leads immigrant communities—members of which com- to multiple health risks, including the transmission monly abuse khat. of infectious diseases such as HIV (human immu- nodeficiency virus) and hepatitis. Drug Trafficking Organizations Other illicit drugs are also trafficked and abused Colombian DTOs, the primary wholesale distrib- to varying degrees throughout the HIDTA region. utors of cocaine and South American heroin, may be Methamphetamine abuse in the region is limited and relinquishing some control of the importation and sporadic; anecdotal reporting suggests that abuse is distribution of those drugs in the W/B HIDTA region prevalent in the homosexual male community in by ceding transportation and lower-level distribution Washington, D.C., but is spreading to rural and subur- to Dominican DTOs and, increasingly, Mexican ban areas adjacent to the HIDTA region, specifically DTOs in an effort to insulate themselves from law western Maryland, southwestern Virginia, and the enforcement. Colombian DTOs may be contracting Shenandoah Valley in Virginia—locations where with Mexican and Dominican DTOs to transport Mexican methamphetamine is now available. large quantities of cocaine, heroin, and marijuana to

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Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

the region. Mexican DTOs and criminal groups trans- been incarcerated. There are no ties between this port and distribute most of marijuana available in the gang and the Washington, D.C., or Baltimore areas. region. They also supply significant quantities of cocaine; an increasing number are transporting large Production quantities of methamphetamine into Virginia, partic- Illicit drug production in the W/B HIDTA ularly the Shenandoah Valley region adjacent to the region is limited to the conversion of powder HIDTA region. cocaine to crack, which typically occurs in urban areas, and to occasional methamphetamine and Other DTOs and criminal groups also distribute marijuana production. illicit drugs at the wholesale level in the HIDTA region. Jamaican criminal groups supply commercial- Crack cocaine conversion by retail-level distrib- grade marijuana, while Vietnamese criminal groups utors occurs within the W/B HIDTA region, prima- have emerged as the principal suppliers of high- rily in urban areas such as Baltimore, Richmond, potency marijuana and MDMA. Middle Eastern, and Washington, D.C. Retail-level distributors typi- Pakistani, and West African DTOs distribute South- cally purchase smaller quantities of powder cocaine west Asian (SWA) heroin, primarily in Baltimore. (less than 1 kg) from midlevel suppliers in larger cities. They then take the powder cocaine to their Gang activity has reportedly increased in some home areas and convert it to crack cocaine, typically areas of the region; this apparent increase may be in residential settings. Most of the powder cocaine due to better gang identification as well as targeted purchased by retail distributors is converted to crack initiatives by law enforcement agencies. Mara Sal- prior to distribution within the region. vatrucha (MS 13) is the largest and fastest-growing gang in the W/B HIDTA region; reports of involve- Powder methamphetamine production in the ment by the gang in drug distribution continue to HIDTA region is very limited. The number of surface. MS 13 has a presence in Washington, clandestine methamphetamine laboratories seized in D.C.; the Broadway area of Baltimore, Montgom- Maryland, Virginia, and Washington, D.C., dropped ery County, and Prince George’s County, Mary- dramatically from 72 in 2005 to 26 in 2006. Of the 26 land; and Fairfax County, Virginia. Bloods and clandestine laboratories seized in 2006, only three Crips sets also are emerging threats in Maryland. were found in the W/B HIDTA counties—two in Montgomery County police report that most gang- Montgomery County and one in Henrico County, Vir- related incidents during the past year were con- ginia. Additionally, one seizure of chemicals and nected to MS 13 and Bloods or Crips. equipment used in methamphetamine production was reported in Anne Arundel County, Maryland, in 2006. Neighborhood-based African American and Declining methamphetamine production is most Hispanic street gangs, or local “crews,” are the likely the result of increased law enforcement pres- principal retail distributors of crack cocaine, her- sure and legislation passed by the Virginia State Leg- oin, and almost all other drugs in the W/B HIDTA islature at the end of 2005 restricting the sale of region. Hispanic gangs are particularly problematic pseudoephedrine. Additionally, methamphetamine in northern Virginia, including 18th Street, 1-5 production in the region most likely further decreased Amigos, and Southside Locos. Bloods sets such as with the 2006 enactment of the federal Combat Meth- L Gang and Eastside Blood Gang (EBG) operate in amphetamine Act, which limits daily purchases of East Baltimore, while the Purple City street gang pseudoephedrine, ephedrine, and phenylpropanola- operates in both East and West Baltimore. These mine; requires retailers to keep the drugs out of cus- gangs have been implicated in assault, drug traffick- tomers’ reach; and requires purchasers to show ing, money laundering, murder, and racketeering identification and sign a logbook. Despite such activities in the area. Fulton Hill Hustlers had been a efforts, the threat posed by local methamphetamine significant crack cocaine distribution gang in the production continues in some areas of the region, Richmond area; however, many of the leaders have

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National Drug Intelligence Center

particularly in Maryland and Washington, D.C., drug traffickers ready access to wholesale drug mar- where no legislation restricting the sale and/or pur- kets such as Atlanta, Miami, and New York City. chase of ephedrine, pseudoephedrine, and other meth- Additionally, U.S. Highway 1 in northern Virginia amphetamine precursor chemicals has been enacted. and Interstates 70 and 83 in Maryland are significant drug transportation routes. Interstates 64 and 85, Limited amounts of marijuana are produced which link to highways transiting the Richmond area, within the W/B HIDTA region from cannabis culti- enable traffickers to transport large quantities of drugs vated at both indoor and outdoor grow sites. How- from the Southwest Border area to the HIDTA region. ever, the amount of marijuana produced at indoor Drug traffickers can also ship drugs directly to the grow sites, especially in the Baltimore and Richmond region through two international airports and four areas, may be increasing as a result of easy access to international seaports, including the Port of Balti- hydroponic equipment, the sale of marijuana seeds more, one of the busiest container and cruise ports in on the Internet, and the increasing demand for high- the United States. (See Figure 2 on page 6.) potency marijuana. Various marijuana producers in the region, particularly Vietnamese criminal groups, A variety of methods are used by DTOs to trans- are increasingly replicating methods used at sophisti- port drugs into and through the W/B HIDTA region. cated indoor grow sites in Canada, such as using The most common methods are private, rental, and elaborate hydroponic equipment, bypassing electrical commercial vehicles and package delivery services, meters, and using entire buildings for grow opera- although traffickers also use couriers on commercial tions. Additionally, many suburban and rural areas aircraft, airfreight services, and sea cargo shipments within the region are conducive to outdoor cannabis to transport drugs. The most innovative DTOs use plots because of the temperate climate and the pres- multiple methods of transportation to avoid detection ence of wide areas of remote or rough terrain such as and increase the likelihood of successful delivery. deep valleys, steep and rocky hillsides, and vast wooded areas. Law enforcement officials remain Law enforcement reporting indicates that drugs cognizant of the potential for an increase in outdoor are increasingly transported into the W/B HIDTA cannabis cultivation. Outdoor grows were seized in region in vehicles with hidden compartments. Mexi- rural areas of Essex, Caroline, Powhatan, and can DTOs typically use crude methods of conceal- Northumberland Counties in Virginia during 2006. ment in vehicles, including hidden compartments in Drug Enforcement Administration (DEA) Baltimore oil pans, car manifolds, brake drums, drive shafts, reports that many outdoor plots in Maryland include radiators, and gas tanks. Dominican DTOs often sinsemilla, appear to have been started indoors, and construct more sophisticated false compartments to generally contain fewer than 60 plants. Moreover, the conceal their drug shipments. Local law enforce- Metropolitan Police Department in Washington, ment has identified several businesses in the region D.C., reports that its investigations of indoor and out- that build automotive traps for drug traffickers. door grows typically involve Caucasian and African American traffickers. Package delivery services are increasingly being used by drug traffickers in the W/B HIDTA region, Transportation and the average size of drug shipments, particularly Many DTOs capitalize on the extensive and marijuana, sent in parcels appears to be increasing diverse transportation network to transport large in some locations, a reversal from the trend in 2005. quantities of drugs to, through, and within the W/B Many drug traffickers prefer to use package deliv- HIDTA region. The interstate highway system and ery services because they can monitor the shipments extensive railway system provide easy transit on the Internet. If a shipment is delayed, they between drug markets in the region and domestic assume law enforcement has intercepted the parcel, source areas. In particular, I-95, the major north-south and they refuse delivery to avoid arrest. Drug traf- transportation corridor on the East Coast, provides fickers routinely use relatively unsophisticated techniques to conceal drugs shipped in parcels, such as

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Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

PENNSYLVANIA

¨¦§70 ¨¦§83 ¨¦§95 NEW MARYLAND JERSEY ¨¦§70 ¨¦§81 Baltimore WEST 70 VIRGINIA ¨¦§ Columbia ¨¦§270 "o n| Si lver BWI Dulles Intl. Spr ing "o Arlington ¨¦§97 ¨¦§66 Washington D.C. Alexandria DELAWARE

C VIRGINIA P h o 95 t e MARYLAND § om s ¨¦ a ac Rive r p e a k e

¨¦§64 HIDTA Region Major City

250,000 + RGINIA VI 100,000 - 249,999 Richmond n| ¨¦§64 75,000 - 99,999 "o International Airport n| n| n| Major Seaport ¨¦§85 Newport Hampton Interstate ¨¦§95 News Figure 2. Washington/Baltimore HIDTA transportation infrastructure. hiding them in ceramic statues, candles, bubble bath York City. However, Mexican DTOs from the south- containers, coffee cans, drink bottles, blenders, western United States are becoming increasingly cooking pots, VCRs, or computer hard drives. involved in cocaine trafficking within the region, especially in southern Virginia and the Shenandoah Heroin is generally transported to the W/B Valley. Additionally, Mexican DTOs that have estab- HIDTA region by Colombian and Dominican DTOs lished transshipment centers in Atlanta and North from sources in Los Angeles, California; New York, Carolina are supplying cocaine as well as metham- New York; Florida; and the Caribbean Islands. Gua- phetamine to the region through these centers. temalans have become involved in supplying heroin to retail distributors in the area, and West African Mexico is the primary source area for groups are increasingly distributing large quantities commercial-grade marijuana available in the W/B of heroin that they obtain from sources in New York HIDTA region; Canada is the primary source area for City to drug dealers in Baltimore. Although most of high-potency marijuana. Mexican DTOs transport the illicit drugs transported to Baltimore are abused most of the commercial-grade marijuana available in locally, the city also serves as a source of heroin for the region from southwestern states. Additionally, users in the surrounding area and throughout the Jamaican criminal groups transport some Mexican state of Maryland. marijuana from Florida and Jamaican marijuana from the Caribbean. Vietnamese criminal groups are the Wholesale quantities of cocaine are transported to principal transporters of high-potency marijuana, the W/B HIDTA region and supplied to local traffick- smuggling it from Canada into the W/B HIDTA ers by Dominican or Colombian DTOs based in New region. Many local traffickers have developed sources

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National Drug Intelligence Center

in the southwest and pick up multipound quantities of Vietnamese criminal groups with ties to Asian marijuana or have it shipped to them. DTOs in Canada have emerged as the principal distributors of high-potency marijuana in the W/B Most of the methamphetamine available in the HIDTA region, displacing Caucasian criminal groups. W/B HIDTA region is transported to the area by For instance, in 2006 a Vietnamese criminal group Mexican DTOs from Georgia, North Carolina, and with connections to Canada, Florida, Texas, and Vir- Texas; however, some rural locations within the ginia was identified by Maryland law enforcement area also are occasionally supplied by outlaw officials as the supplier of large quantities of high- motorcycle gangs (OMGs) that receive metham- potency marijuana to dealers in Harford, Baltimore, phetamine from other OMGs outside the region. and Anne Arundel Counties, Maryland. As a result of Asian DTOs and long-distance truck drivers also rising Vietnamese involvement in the trafficking of transport gram to ounce quantities of methamphet- high-potency marijuana in the region, an overall amine into the region, occasionally in tablet form increase in the availability of the drug has occurred, from Canada. Additionally, methamphetamine resulting in a growing market for the drug, particu- abusers who are members of the region’s homosex- larly in the more affluent areas of the region, where ual community transport ice methamphetamine to abusers appear willing to pay higher prices for higher- urban areas, primarily the District of Columbia, potency marijuana. from sources in New York City. West African, Pakistani, and Middle Eastern MDMA is transported to the region primarily DTOs that most likely have sources of supply in Asia by Vietnamese criminal groups that have opera- distribute heroin in the W/B HIDTA region, making tions in Washington, D.C., and to Baltimore from this one of the few areas of the country where South- Toronto, Canada; New York; or Philadelphia, east Asian (SEA) and SWA heroin are available. Pennsylvania. PCP is transported to the W/B Although SA heroin currently is the predominant type HIDTA region, primarily the Washington, D.C., distributed in the region, a significant disruption in the area, from California by African American distrib- availability of SA heroin could stretch domestic her- utors and abusers traveling aboard commercial air- oin supplies in eastern U.S. markets, including those craft. PCP typically is concealed in various types of in the W/B HIDTA region. West African, Pakistani, plastic bottles and placed in checked baggage. New and Middle Eastern DTOs that have established trans- York City-based traffickers often serve as brokers portation and distribution networks most likely would between the PCP distributors in the region and Cal- supplant any shortage of SA heroin by increasing the ifornia sources. Additionally, some members of availability of Asian heroin in the region. OMGs and abusers who frequent the club scene in the region transport PCP to the area for limited dis- Retail drug distribution in the W/B HIDTA tribution from sources that they maintain in New region often takes place in open-air drug markets in York; Newark, New Jersey; and Philadelphia. Baltimore and Washington, D.C., where crack cocaine, heroin, and other drugs are sold; these mar- Distribution kets provide abusers within and outside the region Colombian and Dominican DTOs, with bases of with ready access to illicit drugs. Most open-air drug operation in New York City, are the principal whole- markets are located in inner-city areas and are oper- sale illicit drug distributors in the W/B HIDTA region. ated by neighborhood-based African American and However, Mexican organizations based in the south- Hispanic gangs or crews that periodically provide ern and western United States are increasingly customers with free samples, or “testers,” of heroin involved in drug trafficking in the region, especially and cocaine to encourage future sales. In areas in southern Virginia and the Shenandoah Valley. Mex- where open-air drug markets do not exist, crack ican traffickers who operate in southern Virginia are cocaine sales take place in low-income areas or often based in North Carolina or have connections to housing projects in which young, single females organizations in North Carolina. provide an “address” to retail-level dealers. Law

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Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

enforcement has also identified bars in the region are filled. Additionally, illegal distribution of pre- that are operated or frequented by OMG members scription drugs through Internet pharmacies is an and used as distribution sites for methamphetamine, emerging problem in the HIDTA region. crack cocaine, and marijuana. Retail distribution methods outside inner-city areas of the region are Abuse evolving; many dealers make arrangements by cell Heroin is the primary drug of abuse in Baltimore phone to meet customers at designated areas. and can be purchased at numerous open-air drug markets in West and East Baltimore in either “raw” “Greenades” (Marijuana Gumballs) (high-purity) or cut form. Heroin abuse in Baltimore in Howard County, Maryland is cultural and intergenerational; most users and The Maryland State Police Forensic Sciences many dealers have parents and grandparents who Division Laboratory recently received two are addicted to heroin. In Washington, D.C., the her- adulterated yellow gumballs for analysis, each oin trade is well entrenched; some local markets with a smiley face printed on one side and a cater to the suburban trade, while others are fre- bored hole filled with greenish-brown vegetable quented by well-established sellers and long-term matter on the opposite side. Both gumballs were addicts. Richmond also has a small heroin market wrapped in tinfoil and labeled “Greenades” with a marijuana leaf and detailed instructions for that supplies long-term addicts with relatively high- use. A school-assigned police officer seized the purity heroin; the purity of this heroin indicates that exhibits from two high school students in 2006 it most likely is being obtained not in Washington or as they made a purchase between classes at a Baltimore but from a primary source area. Howard County high school. Analysis of the plant material confirmed that it was marijuana. According to DEA Heroin Domestic Monitor Each gumball contained approximately 1 gram Program (HDMP) data, SA heroin is the principal of marijuana. This was the first submission of type available in street-level heroin markets in Bal- “Greenades” to the Maryland State Police timore, Richmond, and Washington, D.C. More- Forensic Sciences Division. over, fourth-quarter fiscal year (FY) 2006 HDMP Source: Drug Enforcement Administration. results show that the average heroin purity in Washington (7.6%) was much lower than that in Richmond (38.8%) and Baltimore (45%), as it has Diverted pharmaceuticals are widely available been for several years. and abused in the W/B HIDTA region and are obtained by abusers and distributors primarily through prescription forgeries and doctor-shopping. Maryland High School and College Other methods of diversion used by abusers and Students’ Abuse of Heroin distributors include the use of DEA registration The Montgomery County Police Department numbers by nonregistrants who place controlled reports that high school and college students in substance orders with drug wholesalers for large that area are increasingly abusing heroin and that this abuse has led to one heroin-related quantities of drugs; pharmacy thefts; and diversion death. These students do not purchase the by doctors and pharmacists. Some doctors and heroin locally because there are no major heroin pharmacists sell prescriptions or medications for a dealers in the county. Instead, students pool profit without possessing legitimate records or their money, drive to Washington, D.C., or order controlled substances for their own use. Baltimore, purchase the heroin, and bring it Moreover, medical office staff members who are back. The Montgomery County Police authorized to place orders with pharmacies for Department plans to focus investigative legitimate prescriptions sometimes place orders for resources on the county over the coming months fraudulent prescriptions, which they sell for profit, in order to combat the heroin threat there. and pharmacy employees sometimes steal small Source: Montgomery County Police Department. amounts of medications as legitimate prescriptions

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National Drug Intelligence Center

The abuse of diverted pharmaceuticals in the Fentanyl-Related Deaths in W/B HIDTA region is emerging as a gateway for Maryland In 2006 fentanyl was linked to at least 36 fatal adolescents and young adults to abuse other drugs overdoses in Maryland. Fentanyl is a synthetic such as heroin, cocaine, or methamphetamine. opiate approximately 50 to 100 times more Many initiates to drug abuse are inclined to begin potent than heroin. Clandestinely produced with diverted pharmaceuticals rather than heroin, fentanyl powder, heroin/fentanyl combinations cocaine, or methamphetamine. Once addicted to and, to a lesser extent, cocaine/fentanyl prescription narcotics, abusers often switch to her- combinations were distributed in the region. The oin because of the drug’s higher availability and introduction of fentanyl into the heroin market lower price. Similarly, abusers of prescription stim- resulted in a health crisis for both users and law ulants sometimes graduate to crack cocaine abuse, enforcement because any ingestion or and treatment providers believe that abusers of pre- absorption of the drug through the skin could scription amphetamines, such as Ritalin (methyl- result in a fatal overdose. phenidate) or Adderall (dextroamphetamine), may Source: Maryland State Office of the Chief Medical Examiner. begin to abuse methamphetamine as it becomes more available. Crack cocaine is abused by African American individuals primarily in inner-city areas of the Prescription narcotics are the most commonly HIDTA region. Powder cocaine is abused primarily abused diverted pharmaceuticals in the W/B by middle- to upper-middle-income individuals in HIDTA region. Abuse patterns vary according to metropolitan and suburban areas of the W/B location: methadone and Valium are predominant HIDTA region. Nightclubs and bars in the affluent in Washington, D.C.; methadone, Klonopin (clon- Georgetown area and newly renovated areas of azepam), and other benzodiazepines are mostly Washington, D.C., reportedly are frequented by abused in the Baltimore area; and benzodiazepines, white-collar cocaine users. Powder cocaine is also methadone, and hydromorphone are commonly one of many drugs available and used in the night- abused in Richmond. Abuse of prescription narcot- club scene by suburban teens and young adults. ics, particularly OxyContin and Percocet (oxycodone) and Vicodin (hydrocodone), is increasing in Methamphetamine abuse has been traditionally Baltimore County. This increase may be the result limited to the homosexual male community in the of heroin users switching to prescription narcotics Washington, D.C., area; however, recent law because they fear the intimidation tactics and vio- enforcement reporting suggests that abuse may be lence that street-level heroin dealers often resort to extending to young rural and suburban users during drug transactions. because of increasing availability of the drug. Increases in the availability of methamphetamine Drug-Related Crime are apparent in the Richmond; Tidewater, Virginia; Drug-related violence, including robberies, and northern Virginia areas. thefts, and shootings, is increasing in the W/B HIDTA region. Of particular concern to law MDMA available in the W/B HIDTA region enforcement officials is a rise in the number of generally is abused in combination with other sub- home invasions and stash house robberies occur- stances, including alcohol, marijuana, cocaine, and ring in Baltimore County. Much of this violence is club drugs. In some communities, however, law related to dealers who distribute drugs in the city of enforcement and medical authorities are now not- Baltimore but live and maintain stash houses in ing the abuse of MDMA with heroin or OxyContin. Baltimore County, where they feel more insulated MDMA is mostly available in the college and uni- from law enforcement detection. The abuse of her- versity areas and is used mainly by youth in more oin and crack is also associated with domestic vio- affluent communities at clubs and rave parties. lence, including child neglect, child abuse, and

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Washington/Baltimore High Intensity Drug Trafficking Area Drug Market Analysis

by members of MS 13. This street gang is the largest Effects of Methadone Abuse and fastest-growing gang in the W/B HIDTA region, Enhanced by Certain and reports of the gang’s involvement in drug distri- Pharmaceuticals In April 2006 four individuals were arrested for bution continue to surface. MS 13 has a presence in shoplifting 12 boxes of Prilosec (Omeprazole) Washington, D.C., the Broadway area of Baltimore, from a Queen Anne’s County drugstore. Montgomery County, Prince George’s County, and Maryland drug task forces report an increase in Fairfax County. thefts of Prilosec in Baltimore and Carroll County. Prilosec is believed to increase or intensify the Medicaid-related fraud associated with the dis- high when taken in conjunction with methadone. tribution and abuse of diverted pharmaceuticals is a Other drugs that are thought to intensify the problem in the W/B HIDTA region. The cities of effects of methadone include Goldenseal,a Baltimore, Washington, D.C., and Richmond have Tagamet (cimetidine), Antabuse (disulfiram), large low-income populations that receive Medic- Prozac (fluoxetine), and Zoloft (sertraline). aid benefits. Criminal groups in low-income areas However, these drugs, when taken in conjunction steal, borrow, rent, or buy Medicaid cards from with methadone, may cause methadone-related legitimate holders to fill counterfeit prescriptions, toxicity, such as oversedation, respiratory which are then sold on the street. This activity depression, or overdose. results in fraudulent billings to the Medicaid sys- Source: Maryland State Police. tem, since single cards can be used to obtain multi-

a. Goldenseal is a perennial herb in the buttercup family. It is often used as a ple prescriptions, resulting in millions of dollars in multipurpose remedy, having different medicinal properties. However, it also annual costs to taxpayers. As a result of the huge contains potentially toxic alkaloid compounds and should be used with cau- illicit profit potential, law enforcement officials are tion and not on a long-term basis. concerned that cities in the region with large num- spousal abuse. Some abusers also commit property bers of Medicaid recipients may emerge as local or crimes, such as burglary, forgery, fraud, and theft, regional sources for diverted pharmaceuticals, par- to support their addictions ticularly OxyContin.

Despite the increase in drug-related violence, the Illicit Finance number of homicides decreased in the region in Drug traffickers in the W/B HIDTA region use 2006, particularly in Washington, D.C., and Prince various money laundering techniques in order to George’s County. Washington, D.C., reported 167 conceal illegal profits and finance their operations. homicides, a decrease from 196 in 2005, and Prince The means of transferring illicit funds remain con- George’s County reported 134 homicides, compared sistent but vary by group and include smuggling with 462 in the previous year. The drop in the num- bulk cash, conducting wire transfers, structuring ber of homicides is due in part to a combination of bank deposits and money order purchases below effective policing strategies, incarceration of violent $10,000, commingling drug proceeds with funds offenders, economic development, and population generated at legitimate businesses, purchasing real shift. At least 23 of the 167 homicides in Washing- estate and vehicles, operating front businesses, and ton, D.C., were drug-related, and many others were using smart cards, automated teller machines directly related to gang rivalries. Many of the homi- (ATMs), prepaid stored value cards, and hawalas.1 cides in Prince George’s County involved young Law enforcement reports a decrease in the use of men who were shot inside the Capital Beltway area; traditional financial institutions to launder drug many of these homicides were reportedly committed proceeds because drug traffickers are attempting to

1. Hawala is a fairly anonymous form of banking that has been used in the Middle East for centuries. Hawala money transfers are made outside the formal banking sectors and are virtually undetectable. Transfers are made primarily from one location to another without physically moving funds and, in many cases, with little or no recordkeeping. Any records that are kept are usually in an unrecognizable form of shorthand or are encoded.

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avoid the filing of Currency Transaction Reports cards, ATMs, the precious metals and gems trade, (CTRs) and Suspicious Activity Reports (SARs) and casinos, as well as schemes involving real by bank officials. estate and the insurance industry. Traffickers’ use of these and other techniques is limited only by Colombian, Dominican, and Mexican DTOs their imaginations. and criminal groups primarily transport drug proceeds in bulk from the United States, across the Outlook U.S.–Mexico border and into Mexico, Central Mexican DTOs are likely to increase their America, or South America for eventual repatria- involvement in the trafficking of large quantities of tion. In transporting bulk cash, these traffickers use cocaine, marijuana, and methamphetamine in the private vehicles, commercial vehicles, freight W/B HIDTA region over the next year. These orga- transportation companies, shipping containers, and nizations have ready access to wholesale quantities package delivery services. Additionally, Mexican of illicit drugs and well-established transportation DTOs launder drug proceeds by structuring bank and distribution networks extending into the region deposits into multiple accounts to avoid the CTR from southwestern and southeastern states. Addi- filing threshold. tionally, they are strengthening their relationships with Colombian, Dominican, and Asian DTOs at Asian DTOs and criminal groups use money- the wholesale level and with Hispanic and African intensive front businesses, such as travel agencies American street gangs at the retail level. Mexican or car washes, to launder illicit drug proceeds. DTOs have gradually been expanding their control They also transport drug proceeds in bulk, in the over drug markets in the region, and this growth is form of cash and money orders, to Canada. Once likely to continue as these DTOs look to increasing the proceeds are in the country, these groups supplies in the more urban areas of the region, deposit them into Canadian bank accounts and then where their presence is currently minimal but drug electronically wire transfer the proceeds to source demand is high. Additionally, an increase in the countries. Asian DTOs and criminal groups also Hispanic population in the region over the past sev- launder drug proceeds by structuring bank deposits eral years will allow Mexican criminals with ties to and participating in real estate fraud. drug source and transit countries to operate more easily. If these DTOs continue to expand further in Middle Eastern and Pakistani DTOs and crimi- the region, the availability of ice methamphetamine nal groups launder illicit heroin proceeds through will very likely rise. front businesses, such as used car dealerships, and through the use of hawalas. Nigerian DTOs favor Competition among Mexican, Colombian, and bank fraud schemes as well as bulk currency smug- Dominican DTOs for control of wholesale cocaine gling. West African groups often purchase cars or distribution in the region, rather than resulting in other legal assets to ship back to Africa as a violence, is likely to result in stronger working method of payment. relationships. Colombian and Dominican DTOs have already forged business relationships with Most retail-level drug dealers launder drug pro- Mexican DTOs to transport large volumes of illicit ceeds through the purchase of consumer goods drugs to various domestic locations, including mar- such as clothing, jewelry, and vehicles; through the kets in the region, an arrangement that allows the purchase of real estate; and through front busi- Colombian and Dominican traffickers to insulate nesses. Some retail-level dealers also launder themselves from high-risk smuggling activities and money through recording studios and businesses gives Mexican DTOs a larger role in the high-profit that promote rap music concerts. Drug traffickers drug trade. Closer ties would allow Colombian and use other techniques to launder illicit drug pro- Dominican DTOs to further increase their role in ceeds that involve money orders, stored value marijuana distribution. Stronger relationships

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between Mexican DTOs and Colombian traffickers Pharmaceutical abuse in the W/B HIDTA could lead to increased availability of cocaine in region is likely to escalate over the next year and the region, a development that might result in mar- will be driven by the growing popularity of these ginally lower prices and increased demand. drugs among young adults and adolescents and the wide availability of these drugs through Internet The availability of Mexican ice methamphet- pharmacies and personal networks. Growing num- amine is likely to rise in the HIDTA region in the next bers of prescription drug addicts could eventually year, with a corresponding increase in abuse. The expand the market for heroin, cocaine, and meth- region has an established population of stimulant amphetamine. The ease with which licit drugs are abusers, who might be enticed to switch to metham- acquired for abuse by all socioeconomic and age phetamine if the drug were to become more available groups, along with the preference of many heroin and prices were to decrease. Mexican DTOs, which addicts for prescription narcotics, including oxy- are gaining prominence in the region and have ready codone, methadone, and fentanyl, could increase access to large quantities of high-potency ice, are very the immediate and long-term demand for diverted likely to transport more methamphetamine to the area pharmaceuticals in the region. to create a new market for the drug. An increase in the number of abusers addicted to ice methamphetamine The arrests of several major PCP producers in could severely compromise the ability of treatment southern California (the primary source for PCP agencies in the W/B HIDTA region to provide ade- dealers in the HIDTA region) may contribute to a quate care, not only because they are already over- decrease in PCP availability in the W/B HIDTA taxed as a result of the large number of cocaine and region. PCP production decreased during 2006 in heroin abusers, but also because the highly addictive the Los Angeles area, largely as a result of the nature of methamphetamine often leads to high rates arrests of several major producers. Most of the PCP of recidivism. Local production is unlikely to expand available in the United States is produced by Afri- in the W/B HIDTA region in the coming year, partic- can American criminal groups and street gangs in ularly if proactive legislation is enacted throughout the Los Angeles HIDTA region. the region to more rigorously control the availability of precursor chemicals. Stored value cards are likely to be used more often over the next year by traffickers to launder Marijuana abuse is prevalent in the W/B HIDTA drug proceeds. Stored value cards physically region, and now that the established market of abus- resemble traditional credit or debit cards and can ers has been exposed to high-potency marijuana, pri- be used to access both global debit and ATM net- marily supplied by Vietnamese criminal groups, its works. Stored value card programs often accept popularity will quite likely continue to rise. To meet applications without face-to-face verification of increasing demand, availability of both imported cardholder identity, taking applications online or and locally produced high-potency marijuana can be by fax. Funds can be prepaid by one person and expected to grow and competition among distribu- withdrawn by another through ATMs anywhere in tors to rise. Increased competition could drive prices the world; multiple cards can be issued for a single down, further spurring demand for high-potency account. These cards provide a convenient way to marijuana throughout the region. Indoor cultivation launder money because they are an easily trans- of high-potency cannabis, including the number of portable and virtually anonymous way to store and sophisticated hydroponic grows, may increase sig- access cash. nificantly in the region, particularly in urban and suburban residential areas.

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Sources

State and Local District of Columbia Metropolitan Police Department Maryland Annapolis Police Department Anne Arundel County Police Department Baltimore City Police Department Organized Crime Division Narcotics Section Baltimore County Police Department Charles County Sheriff’s Office Cheverly Police Department Chevy Chase Village Police Department District Heights Police Department Howard County Police Department Hyattsville Police Department Laurel Police Department Maryland State Office of the Chief Medical Examiner Maryland State Police Forensic Sciences Division Montgomery County Police Department Mount Rainier Police Department Prince George’s County Police Department Riverdale Park Police Department Rockville City Police Department University of Maryland Center for Substance Abuse Research Maryland Gangs Information and Prevention Virginia Alexandria Police Department Arlington County Police Department Fairfax County Police Department Falls Church City Police Department Henrico County Division of Police Leesburg Police Department

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Loudoun County Sheriff’s Office Manassas City Police Department Petersburg Police Department Prince George County Police Department Richmond Police Department Virginia State Police Bureau of Criminal Investigation Regional Middle Atlantic–Great Lakes Organized Crime Law Enforcement Network Federal Executive Office of the President Office of National Drug Control Policy High Intensity Drug Trafficking Areas Los Angeles Washington/Baltimore U.S. Department of Commerce U.S. Census Bureau U.S. Department of Health and Human Services Centers for Disease Control and Prevention National Institutes of Health National Institute on Drug Abuse Community Epidemiology Work Group U.S. Department of Homeland Security U.S. Coast Guard U.S. Customs and Immigration Service U.S. Department of Justice Drug Enforcement Administration El Paso Intelligence Center National Clandestine Laboratory Seizure System Washington Division Baltimore District Office Richmond District Office U.S. Attorney’s Offices District of Columbia Eastern District of Virginia Maryland U.S. Department of the Treasury Internal Revenue Service U.S. Department of Transportation Federal Aviation Administration

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Other The Los Angeles Times The Washington Post The Washington Times The World and I

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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 06 26 07

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