Rocky Mountain High Intensity Drug Trafficking Area Drug Market

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Drug Market Analysis 2008 Rocky Mountain High Intensity Drug Trafficking Area

NATIONAL DRUG INTELLIGENCE CENTER U.S. DEPARTMENT OF JUSTICE

National Drug Intelligence Center 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://www.leo.gov/http://leowcs.leopriv.gov/lesig/ndic/index.htm

061208 This document may contain dated information. It has been made available to provide access to historical materials. ARCHIVED

Product No. 2008-R0813-029 June 2008

Drug Market Analysis 2008 Rocky Mountain High Intensity Drug Trafficking Area

NATIONAL DRUG INTELLIGENCE CENTER U.S. DEPARTMENT OF JUSTICE

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 coordinated with the HIDTA, is limited in scope to HIDTA jurisdictional boundaries, and draws upon a wide variety of sources within those boundaries.

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Ta b l e o f Co n t e n t s

Preface...... 1

Strategic Drug Threat Developments...... 2

HIDTA Overview...... 2

Drug Threat Overview...... 3

Drug Trafficking Organizations...... 5

Production...... 6

Transportation...... 7

Distribution...... 8

Drug-Related Crime...... 10

Abuse...... 11

Illicit Finance...... 12

Outlook...... 13

Sources...... 14

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Pr e f a c e This assessment provides a strategic overview of the illicit drug situation in the Rocky Mountain High Intensity Drug Trafficking Area (HIDTA), highlighting significant trends and law enforcement concerns related to the trafficking and abuse of illicit drugs. The report was prepared through detailed analysis of recent law enforcement reporting, information obtained through interviews with law enforcement and public health officials, and available statistical data. The report is designed to provide policymakers, resource planners, and law enforcement officials with a focused discussion of key drug issues and developments facing the Rocky Mountain HIDTA.

Del Bonita Whitlash CANADA Whitetail Major City* Roosville Trail Creek Piegan Sweetgrass Wild Horse Willow Creek 500,000 + Kootenai Chief Mountain Turner Morgan Opheim Scobey Raymond National Blackfeet Forest 250,000 - 499,999 FLATHEAD Fort Peck Fort 100,000 - 249,999 15 Rocky Belknap Boys City of Interest Flathead Port of Entry 90 LEWIS Great International Airport AND Falls CLARK Interstate CASCADE MONTANA MISSOULA National Forest Reservation Helena 94 HIDTA County YELLOWSTONE * By Census 2000 Population

IDAHO Billings Butte Bozeman 90 Northern Area of Rocky Mountain HIDTA Crow Cheyenne

WA ND MT MN 90 SOUTH DAKOTA 90 ORIDAHO SD ID WY 15 IA CAMPBELL NE NV UT CO KS Wind River CA OK 84 AZ NM NATRONA TX Casper 25 WYOMING 84 15

SWEETWATER NEBRASKA

80 ALBANY WEBER Rock Ogden Green LARAMIE Springs Cheyenne 80 DAVIS UINTA River 80 SALT LAKE CITY INTL

Salt Lake City LARIMER WELD West Valley City SUMMIT Fort Collins MOFFAT Greeley Skull Valley SALT LAKE ROUTT DENVER INTL 76 Goshute Provo BOULDER Westminster UTAH GRAND Arvada Uintah & Lakewood Denver ADAMS Ouray NEVADA ARAPAHOE 15 GARFIELD EAGLE Aurora 70 UTAH JEFFERSON DOUGLAS

70 KANSAS Colorado MESA EL Springs PASO

COLORADO Pueblo 15 PUEBLO

WASHINGTON LA 25 Paiute PLATA St. George Ute Navajo Mountain Southern Ute ARIZONA NEW MEXICO OKLAHOMA

Figure 1. Rocky Mountain High Intensity Drug Trafficking Area.

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Percocet, and Percodan (oxycodone); Valium St r a t e g i c Dr u g Th r e a t (hydrocodone); and Lortab (diazepam) are De v e l o p m e n t s widely abused in the region. • Methamphetamine trafficking and abuse pose the primary drug threats to the Rocky Moun- HIDTA Ov e r v i e w tain HIDTA region, despite declines in local methamphetamine production that have The Rocky Mountain HIDTA encompasses 34 resulted from successful precursor chemical designated counties in Colorado, Montana, Utah, control legislation, law enforcement op- and Wyoming. The region contains large metro- erations, and public awareness campaigns. politan areas as well as expansive, sparsely popu- Mexican drug trafficking organizations lated areas, including public and tribal lands. (See (DTOs) have offset the decline in regional Figure 1 on page 1.) The HIDTA region is located powder methamphetamine production by between major drug source areas in Mexico and supplying significant quantities of high-purity Canada and is linked by interstate highways to ice methamphetamine to the region. major domestic drug markets across the United States. Denver and Colorado Springs, Colorado, • Law enforcement officials report an in- and Salt Lake City, Utah, are the three largest met- crease in powder cocaine abuse in the ropolitan areas and serve as distribution centers HIDTA region. Some methamphetamine for other regional drug markets as well as trans- abusers have switched to powder cocaine, shipment points for drugs supplied to markets in which may be due in part to a concerted the Midwest and the eastern United States. public awareness campaign alerting users to the short- and long-term consequences Rural areas in the HIDTA region, including of methamphetamine abuse. 34 national forests, provide traffickers with an opportunity to avoid detection as they engage in • Rising demand for high-potency marijuana illicit activities, such as drug smuggling, cannabis has resulted in increased production of the cultivation and, to a lesser extent, powder meth- drug in the HIDTA region. Some cannabis amphetamine production. Drug smuggling from cultivators in Colorado use state medical Canada through remote areas of the HIDTA region marijuana provisions as a pretext for main- is a particular concern for law enforcement agen- taining illicit grow sites. cies. The 585-mile U.S.–Canada border in Mon- tana has 15 official ports of entry (POEs)1 as well as • The trafficking and abuse of MDMA hundreds of easily accessible, unofficial crossings (3,4-methylenedioxymethamphetamine, that are often used by traffickers to transport drugs also known as ecstasy) are increasing in the from Canada into the region using private and com- HIDTA region, particularly in the Denver mercial vehicles, all-terrain vehicles (ATVs), snow- area. Asian DTOs and criminal groups are mobiles, private aircraft, and couriers who trans- smuggling increasing amounts of MDMA port the drugs on foot. For example, the Kootenai from Canada and California for regional and National Forest, located on the U.S.–Canada border nationwide distribution. in northwestern Montana and northeastern Idaho— • The distribution and abuse of diverted commonly referred to as “The Yaak”—is often used pharmaceutical drugs pose a significant and by drug smugglers because of the many off-road increasing threat in some areas of the HIDTA routes and packing trails that cross the border. region. Law enforcement officials report that prescription drugs such as OxyContin, 1. The ports of entry (POEs) are based on those listed by U.S. Customs and Border Protection, Office of Border Patrol as of November 15, 2004.

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r u g h r e a t v e r v i e w D T O Table 1. Law Enforcement Responses to The Rocky Mountain HIDTA region is a the National Drug Threat Survey 2007 significant distribution and transshipment center Pertaining to Methamphetamine, for illicit drugs supplied by Mexican DTOs. They Rocky Mountain HIDTA States, in Percentages exploit the region’s centralized location, prox- imity to Mexican sources of supply, and exten- Contributes Contributes sive transportation infrastructure to distribute Greatest Most to Most to Drug Threat Violent Property wholesale quantities of ice methamphetamine, Crime Crime cocaine, marijuana, and heroin. Mexican DTOs and criminal groups use key distribution centers Colorado 75 77 85 in Colorado, including Denver and Colorado Montana 100 90 97 Springs, as well as Salt Lake City, Utah, to sup- Utah 94 94 90 ply illicit drugs to smaller cities throughout the Wyoming 85 97 85 region, such as Fort Collins, Pueblo, and Gree- ley, Colorado; Billings, Montana; and Cheyenne, Source: National Drug Intelligence Center. Wyoming, and to transship drugs to markets in the Midwest and the eastern United States. Mexican DTOs and criminal groups continue to Cocaine is widely available and abused in the refine their operations as well as expand into the Rocky Mountain HIDTA region; crack cocaine region’s more remote areas to further their traf- continues to pose a significant drug threat in ficking and distribution capabilities. metropolitan areas, while powder cocaine abuse appears to be increasing in many areas of the re- 2 Ice methamphetamine poses the greatest gion. Cocaine availability is reportedly increasing drug threat to the region; widespread distribution in the region, despite reports of temporary cocaine and abuse of the drug strain limited local law shortages in Denver in early 2007. During the first enforcement, public health, and social service half of 2007, Denver law enforcement officers resources throughout the HIDTA region. Success- reported temporary shortages in powder cocaine ful law enforcement operations and precursor availability along with decreased purity and in- control legislation have significantly decreased creased prices. However, during the latter half of powder methamphetamine production in the 2007, cocaine purity and prices returned to previous region; however, Mexican DTOs have compen- levels. Mexican DTOs increasingly supply mem- sated for this decline by supplying significant bers of Hispanic street gangs and independent quantities of high-purity ice methamphetamine dealers in metropolitan areas with powder co- from Mexico. Methamphetamine-related treat- caine. Law enforcement officials in Aurora, Colo- ment admissions to publicly funded facilities rado Springs, Denver, and Fort Collins, Colorado; continue to exceed the number of admissions Provo, Ogden, and Salt Lake City, Utah; Billings for any other illicit drug. The threat posed by ice and Bozeman, Montana; and in southwestern and methamphetamine is compounded by the drug’s northeastern Wyoming report rising availability of addictive nature and the direct association that powder cocaine. Increasing availability of cocaine methamphetamine abuse has with high levels in Wyoming may be attributed in part to an influx of violence, identity theft, and property crime in of transient energy sector workers with a great the region. deal of disposable income, some of whom abuse illicit drugs, and to growing demand generated by some former methamphetamine abusers in Utah 2. For the purposes of this report, ice methamphetamine refers to methamphetamine that has been crystallized and Wyoming who switched to powder cocaine from powder methamphetamine. as a result of successful law enforcement efforts

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targeting methamphetamine and extensive public The distribution and abuse of heroin (primar- awareness campaigns. Much of the powder co- ily Mexican black tar and brown powder) have caine that is transported to the region is converted traditionally been limited to large urban areas. into crack by African American and Hispanic However, HIDTA officials report increasing heroin retail-level distributors in metropolitan neighbor- distribution in secondary market areas of the re- hoods where the drug is sold. gion, primarily Fort Collins, Greeley, Aurora, and Pueblo, Colorado. According to Colorado’s Front Marijuana is the most widely available and Range Task Force, Mexican heroin distribution frequently abused drug in the HIDTA region. cells are expanding in size, efficiency, and sophis- Mexican DTOs and criminal groups are the tication, resulting in increased heroin availability. primary traffickers of commercial-grade Mexican This increased availability has resulted in lower marijuana, the most available type in the region. prices and higher purity levels, factors that have In addition, Mexican DTOs and criminal groups led a growing number of younger users (predomi- operate most of the large outdoor grow operations nantly adolescents ages 16 and older) to abuse that are generally located in counties that have heroin. Health service officials have noted that extensive remote locations, public lands, and rural many younger heroin users in Utah and Wyoming areas. The increasing availability of high-potency began abusing prescription narcotics such as Oxy- marijuana in the region is attributed to the con- Contin and ultimately switched to heroin because tinued smuggling of high-potency marijuana from it is cheaper and easier to obtain. Canada and the growing prevalence of indoor cannabis grow sites operated by Asian DTOs and MDMA availability and abuse vary within the Caucasian independent dealers. Law enforcement region; Wyoming and Montana law enforcement officials in Colorado and Utah reported that illegal officials report low levels of MDMA availability cannabis cultivators are taking advantage of the and abuse, while officials in Denver and Salt Lake downturn in the real estate market by purchasing City report increased distribution and abuse. In multiple vacant residences and setting up indoor the Denver metropolitan area, Asian criminal grow operations. Moreover, in the Denver area groups, Asian gangs, and independent Caucasian numerous individuals are exploiting state medici- distributors are the primary suppliers of MDMA. nal marijuana laws and caregiver status to operate The Metro Gang Task Force in Denver continues illicit indoor cannabis grows. According to the to seize large amounts of MDMA (seizures of Colorado Department of Public Health and Envi- 10,000 dosage units are not uncommon) from ronment, Colorado state law permits a patient and sources in California. Increasing MDMA abuse is his or her primary caregiver to collectively possess also contributing to a revival of rave-type activities no more than 2 ounces of a usable form of mari- in Denver and Salt Lake City. juana and no more than six cannabis plants, with three or fewer being mature, flowering plants that Diverted pharmaceutical drugs and other produce a usable form of marijuana.3 dangerous drugs (ODDs) pose a lesser threat to the HIDTA region. Abuse of diverted pharmaceutical drugs—particularly OxyContin—has been increasing; however, many prescription narcotics 3. “Patient” refers to a person who has a debilitating abusers are shifting to Mexican black tar heroin medical condition. “Primary caregiver” is a person, other than the patient or the patient’s physician, who is 18 abuse because of the drug’s lower costs and years of age or older and has significant responsibility for greater availability. ODDs, primarily LSD (lyser- managing the well-being of a patient who has a debilitat- gic acid diethylamide); ketamine; steroids; and ing medical condition. “Usable form of marijuana” means GHB (gamma-hydroxybutyrate), are available and the seeds, leaves, buds, and flowers of the plant (genus) cannabis and any mixture or preparation thereof that is ap- abused to a limited extent in metropolitan areas of propriate for medical use according to state guidelines, but the HIDTA region. excludes the plant’s stalks, stems, and roots.

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intelligence collection, and interrogations. The Dr u g Tr a f f i c k i n g ability of Mexican traffickers to control drug distri- Or g a n i z a t i o n s bution in the region is augmented by alliances that they have formed with various criminal groups, Mexican DTOs use the Rocky Mountain prison gangs, street gangs, and outlaw motorcycle HIDTA region as a base of operation for regional gangs (OMGs). Mexican DTOs capitalize on the and national-level drug trafficking and money organizational networks that these gangs have es- laundering activities. Mexican DTOs and criminal tablished in the region by using them to transport, groups exploit the HIDTA region’s centralized store, package, and distribute illicit drugs and to location and highly developed transportation assist in money laundering activities. infrastructure to supply wholesale quantities of ice methamphetamine, cocaine, heroin, and Asian DTOs are the primary transporters and marijuana to the Rocky Mountain HIDTA region distributors of Canadian high-potency marijuana from sources of supply in Mexico and distribution and MDMA in the region. Canada-based Vietnam- cells along the Southwest Border. Mexican orga- ese criminal groups smuggle high-potency mari- nizational connections to these sources of supply juana and MDMA into the region across the U.S.– are often family-based; extended family members Canada border through Washington and Montana. are located throughout the HIDTA region and the Asian DTOs often shield themselves from law Southwest Border area as well as in Mexico. Mexi- enforcement scrutiny by employing surrogate can DTO members also assimilate into the large criminal groups to conduct some high-risk opera- Hispanic population in the region, allowing them tions. For example, they often use East Indian to conduct their drug trafficking operations with a drug transportation organizations for cross-border degree of anonymity. Mexican traffickers exploit smuggling of marijuana, MDMA, cocaine, and language barriers between themselves and law bulk currency. Asian DTOs are also reducing the enforcement authorities to impede interviews, costs and risks associated with marijuana smuggling by increasing the number of indoor cannabis grow sites that they operate within the HIDTA re- Drug Trafficking Organizations, gion. Asian traffickers coordinate the smuggling of Criminal Groups, and Gangs Canadian marijuana and MDMA into the United States and cocaine and bulk cash into Canada, Drug trafficking organizations are complex using fixed-wing aircraft, float planes, and helicop- organizations with highly defined command- ters as well as commercial and private vehicles. and-control structures that produce, transport, Officials also report that Asian traffickers hire local and/or distribute large quantities of one or more illicit drugs. individuals as “mules” to cross the Montana– Canada border. These mules cross into Montana Criminal groups operating in the United States between POEs while carrying 50- to 100-pound are numerous and range from small to moderately quantities of marijuana, typically in hockey equip- sized, loosely knit groups that distribute one or more drugs at the retail level and midlevel. ment bags. These loads are often transported by private vehicles, all-terrain vehicles (ATVs), and Gangs are defined by the National Alliance of snowmobiles as well as on foot. Most of the high- Gang Investigators’ Associations as groups or potency marijuana and MDMA smuggled across associations of three or more persons with a common identifying sign, symbol, or name, the the border is transported to distribution centers in members of which individually or collectively Denver; Salt Lake City; Las Vegas, Nevada; and engage in criminal activity that creates an atmo- Los Angeles and San Francisco, California. sphere of fear and intimidation. Street gangs and OMGs pose a major challenge to law enforcement agencies in the Rocky Moun- tain HIDTA region because they often use violence

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in establishing or maintaining control of their drug trafficking activities. These gangs are responsible Figure 2. Methamphetamine Laboratory for most of the assaults, home invasion robberies, Seizures in Rocky Mountain and homicides that take place in major metro- HIDTA Counties, 2003–2007 politan areas of the region. Hispanic street gangs, 200 Colorado primarily affiliates of Sureños and Norteños, are 180 midlevel and retail-level distributors of ice meth- Montana Utah amphetamine, cocaine, heroin, and marijuana that 160 Wyoming they receive from Mexican wholesalers. African 140 American street gang members, most notably affiliates of Bloods and Crips, are the primary convert- 120 ers and retail distributors of crack cocaine in the 100 HIDTA region. OMGs, particularly Hells Angels Motorcycle Club (HAMC), Outlaws, Bandidos, 80 and Sons of Silence, distribute ice methamphet- 60 amine and high-potency marijuana in some areas of the region. These OMGs obtain methamphet- 40 amine from Mexican traffickers and also transport 20 the drug from California and southwestern states. 0 Members of HAMC smuggle significant quantities 2003 2004 2005 2006 2007 of high-potency marijuana from Canada into the Source: National Seizure System, as of May 6, 2008. United States. They cross the border primarily in British Columbia, Canada, but are increasingly transporting high-potency marijuana directly into methamphetamine producers are still active, the HIDTA region through POEs in Montana. producing only enough methamphetamine for personal use or limited distribution. Local powder methamphetamine production accounts for less Pr o d u ct i o n than 10 percent of the methamphetamine avail- Illicit drug production in the Rocky Mountain able in the HIDTA region, especially in Denver HIDTA region is typically limited to small-scale and the Salt Lake City area. methamphetamine production, crack cocaine Crack cocaine conversion is a significant conversion, and outdoor and indoor cannabis concern throughout the Rocky Mountain HIDTA cultivation. Local methamphetamine production region. Crack conversion is a particular threat in has decreased significantly in the region in recent the large metropolitan areas of Aurora, Colorado years, largely as a result of regulatory efforts to Springs, Denver, Ogden, and Salt Lake City, where control precursor chemicals and successful law African American street gangs and independent enforcement operations. In fact, according to Na- dealers convert large amounts of powder cocaine. tional Seizure System (NSS) data, combined meth- Crack cocaine conversion occurs primarily in resi- amphetamine laboratory seizures in Colorado, dential settings, and retail distribution commonly Montana, Utah, and Wyoming HIDTA counties takes place in surrounding neighborhoods. decreased 90 percent from 2003 (278) through 2007 (27).4 (See Figure 2.) However, some Cannabis is cultivated extensively throughout small-scale independent domestic powder the Rocky Mountain HIDTA region, primarily at outdoor grow sites in remote locations, on 4. These figures include seizures of powder methamphet- public lands, and in rural areas. Outdoor sites amine laboratories; chemicals, glass, and equipment; and are often tended by Hispanic laborers who have dumpsites.

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been recruited by Mexican criminal organizations law enforcement interdiction efforts. Interstate and who live at the sites throughout the grow- 15 begins near the U.S.–Mexico border in San ing cycle. The damage caused by outdoor can- Diego and passes through numerous drug markets nabis cultivators, particularly on public lands, is in the region, including St. George and Salt Lake a serious environmental concern. The number of City, Utah, and Butte and Great Falls, Montana, indoor cannabis grows that produce high-potency before terminating at the Sweetgrass POE at the marijuana is increasing throughout the region, U.S.–Canada border. Interstate 25 begins at the particularly in northern Colorado and Utah. U.S.–Mexico border in El Paso, Texas, and passes Asian criminal groups and Caucasian indepen- through Colorado Springs, Denver, Cheyenne, dent dealers are becoming more knowledgeable and Casper. Interstate 80 begins in San Francisco about indoor high-potency grow methods; some and passes through Salt Lake City and Cheyenne. reporting indicates that experienced growers from California, Washington, and Oregon are moving Denver, Colorado Springs, and Salt Lake into the Colorado area to set up complex indoor City serve as principal distribution centers for grow operations. An average indoor grow site other regional drug markets as well as transship- contains 75 to 80 plants, but in the Denver area ment points for drugs supplied to markets in the officials report that it is not uncommon to seize Midwest and the eastern United States. Mexican houses containing 300 to 400 plants. Law enforce- DTOs further transport illicit drugs from Denver ment officials in Colorado and Utah report that and Colorado Springs to other markets in the cannabis cultivators are taking advantage of the region, such as Billings, Montana, and Cheyenne, current downturn in the real estate market to pur- Wyoming, and to major Midwest and eastern drug chase multiple vacant residences, which they use markets, such as Chicago; Kansas City, Missouri; for indoor cannabis cultivation. Residential rental Minneapolis, Minnesota; and New York, New properties owned by individuals from out-of-state York. They also use Salt Lake City as a distribu- are considered to be prime locations for indoor tion and transshipment center for secondary drug grow sites. Many of these properties are rented by markets in the HIDTA region as well as markets in older Caucasians who employ college age youths Arizona, California, and other neighboring states. to tend the grow sites. In addition, some cannabis Canada-based Asian DTOs and various other cultivators in Colorado use the state medical mari- traffickers smuggle large quantities of MDMA and juana provisions as a pretext for conducting illicit high-potency marijuana into the region through grows within the HIDTA region. and between POEs along the U.S.–Canada border. U.S. Customs and Border Protection (CBP) officials in Great Falls, Montana, report that significant Tr a n s p o r t a t i o n quantities of these drugs are smuggled by traffickers through POEs in Piegan, Roosville, Sweetgrass, Mexican DTOs and criminal groups are the and Raymond, Montana. Asian DTOs, OMGs principal transporters of multikilogram quantities (HAMC and Bandidos), and Caucasian criminal of methamphetamine, cocaine, and marijuana and groups based in British Columbia and Alberta, smaller quantities of Mexican black tar and brown Canada, use Interstates 15, 25, and 90 to trans- powder heroin to the HIDTA region, particularly port high-potency marijuana and MDMA across from source areas in Mexico, including Juárez, the U.S.–Canada border through Washington Nayarit, and Sinaloa, or through and between and western Montana in private and commercial POEs along the U.S. Southwest Border. Interstates vehicles. The rugged terrain and remote locations 15, 25, and 80 are the principal routes used by allow these smuggling groups to use other modes Mexican traffickers to transport drugs into the of transportation, including ATVs, snowmobiles, region; however, these traffickers also use vari- and private aircraft (both fixed-wing and heli- ous state and U.S. highways to attempt to avoid copter). After smuggling drug shipments into the

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United States, these groups often smuggle powder cocaine and illicit drug proceeds into Canada on Methamphetamine Ring Dismantled the return trip. in Western Colorado Traffickers who operate in the Midwest and In May 2007 members of the Western Colorado eastern United States often transit the Rocky Drug Task Force and the Two Rivers Drug En- Mountain HIDTA region with illicit drug ship- forcement Team arrested six illegal aliens from Mexico and seized approximately 4 pounds of ments that were obtained in California or the methamphetamine, 5 ounces of powder cocaine, Pacific Northwest. Denver, Colorado Springs, and and a small amount of crack cocaine. The orga- Salt Lake City are the major transshipment and nization was responsible for transporting multi- distribution centers in the Rocky Mountain HIDTA pound quantities of methamphetamine from the region. The Colorado State Patrol (CSP) reports Roaring Fork Valley to Mesa County on I-70. The that most of the drugs seized by its agency are in average purity level of the methamphetamine was transit to other states, with Illinois, Montana, New 76 percent, and the drug sold for approximately York, and Utah being primary destinations. $800 per ounce and $12,500 per pound. Private and commercial vehicles are the Source: Drug Enforcement Administration. principal modes used by traffickers to transport drugs along the major interstate highways into and through the region; traffickers also employ couriers on trains, buses, and private and commercial Di s t r i b u t i o n aircraft to transport illicit drugs. Flat, remote, rural areas provide numerous areas for light aircraft Mexican DTOs and criminal groups are the to land. However, because of a lack of reporting dominant wholesale distributors of ice metham- of suspicious aircraft crossings in Montana, this phetamine, cocaine, Mexican black tar and brown type of activity is difficult to track. Illicit drugs powder heroin, and commercial-grade marijuana transported in private vehicles are often placed in in the Rocky Mountain HIDTA region. Mexican hidden compartments; drugs transported in com- traffickers use Colorado Springs, Denver, and Salt mercial vehicles are typically placed in hidden Lake City as the principal distribution centers; compartments or commingled with legitimate from staging areas in or near these cities, they sup- products such as produce, car parts, building ma- ply illicit drugs to local Hispanic, African Ameri- terials, or heavy machinery. Some criminal groups can, and Asian criminal groups and street gangs ship marijuana, cocaine, and MDMA through the and to distributors in secondary markets in the U.S. Postal Service or use package delivery ser- HIDTA region. Distributors in remote areas of the vices in order to reduce transportation costs and region often travel to Denver and Salt Lake City to increase profits. obtain drugs from Mexican DTOs for distribution in their communities. When Mexican traffickers supply ice methamphetamine, cocaine, or heroin to distributors who are not Hispanic, they typically charge them a 15 to 20 percent premium over the price paid by Hispanic distributors for the same drugs. Mexican traffickers operating in the Rocky Mountain HIDTA region also supply illicit drugs to other major domestic drug markets, such as Chicago; Kansas City; Omaha, Nebraska; and Philadelphia, Pennsylvania.

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Hispanic criminal groups and street gangs are 30’s Crips are the primary converters and distribu- significant midlevel and retail-level illicit drug tors of crack cocaine in metropolitan areas of the distributors in the region. Hispanic street gangs, region. African American street gangs operating such as Sureños 13, distribute methamphetamine, in Denver also distribute PCP (phencyclidine) that cocaine, heroin, and marijuana that they obtain they acquire from gang associates who produce from Mexican traffickers. Hispanic street gangs are the drug in Los Angeles. aggressively expanding their retail-level crack cocaine distribution operations in some metropolitan Asian DTOs and criminal groups are the areas of the region. Moreover, law enforcement primary wholesale suppliers of high-potency officials report that Honduran groups in Denver Canadian marijuana and MDMA in the Rocky and other areas are becoming more involved in Mountain HIDTA region. These traffickers supply retail drug distribution. Honduran youths in Denver the drugs principally to Asian retail distributors, are moving aggressively into retail heroin distribu- mostly Asian street gangs and, to a lesser extent, tion sales, and in some remote areas, such as Eagle Caucasian retail-level distributors in metropolitan County (100 miles west of Denver), Honduran areas of the HIDTA region, particularly in Denver groups are engaging in the retail distribution of ice and Salt Lake City. methamphetamine and powder cocaine. Independent dealers and OMGs also distrib- African American street gangs are significant ute methamphetamine, marijuana, and Mexican retail-level drug distributors, particularly in metro- black tar and brown powder heroin in smaller politan areas of the Rocky Mountain HIDTA region. cities and rural areas of the HIDTA region. Cauca- African American street gangs such as Rolling sian and Hispanic independent dealers routinely travel from markets such as Billings, Montana, and Cheyenne, Green River, and Rock Springs, Wyo- Open-Air Drug Markets ming, to obtain illicit drugs from Mexican DTOs and street gangs in Denver and Salt Lake City for in Salt Lake City distribution in their communities. Some African In November 2007 the Salt Lake City Police American local independent dealers in Denver Department, working in conjunction with fed- obtain MDMA from Canada for local distribution. eral immigration and state corrections officers, conducted an intensive 6-day operation targeting open-air drug markets in the city. Law enforce- In order to facilitate drug distribution in the ment officers focused their efforts on 49 city Rocky Mountain HIDTA region, particularly at the blocks, including Pioneer Park in the west-central retail level, traffickers commonly use disposable area of Salt Lake City’s central business dis- cell phones. Such phones have commonly been trict. Officials report that 946 arrests were made used by wholesale and midlevel traffickers in the citywide during that 6-day period—more than 70 past, and their popularity has increased rapidly percent of those arrests took place in the targeted among retail-level traffickers because they are zone around Pioneer Park, an area representing relatively cheap and difficult to trace (stores do less than 1 percent of the city. Sixty-eight people not require a credit check at the time of purchase). had federal holds placed on them for being Traffickers typically use cell phones for a limited undocumented illegal aliens, 87 people were arrested for distribution of a controlled substance, time before switching to new phones to further and 165 people were arrested for solicitation of a reduce the possibility of law enforcement detec- controlled substance. Most of the individuals ar- tion. Many DTOs communicate using push-to- rested for drug offenses were multistate offenders talk phones, which are similar to walkie-talkies. who had been in Utah for less than 4 years. These communications are difficult to intercept because of direct dialing and the brief nature of Source: Salt Lake City Police Department. the conversations. Criminals sometimes switch

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Table 2. Drug Distribution by Group, Rocky Mountain HIDTA Region, 2007

Drug Drugs Distributed at the Wholesale Level Drugs Distributed at the Retail Level Distribution Group African American Marijuana Crack cocaine, heroin, marijuana, ODDs Asian High-potency marijuana, MDMA Powder and crack cocaine, MDMA Powder cocaine, heroin, marijuana, MDMA, Caucasian Marijuana, MDMA methamphetamine, diverted pharmaceutical drugs, ODDs

Powder cocaine, heroin, Hispanic Crack cocaine, marijuana, methamphetamine methamphetamine, marijuana

Powder cocaine, black tar heroin, brown Mexican powder heroin, Powder cocaine, marijuana, methamphetamine methamphetamine, marijuana Native American NA Methamphetamine, marijuana Vietnamese MDMA, high-potency marijuana NA Powder and crack cocaine, heroin, marijuana, MDMA, Street gangs NA methamphetamine, diverted pharmaceutical drugs OMGs NA Marijuana, methamphetamine

Source: Drug Enforcement Administration; Organized Crime Drug Enforcement Task Force. NA—Not applicable.

from conventional cell phones to push-to-talk commit these crimes, but their addiction often phones in midconversation to exchange impor- results in incidents of domestic violence and child tant information that could be used as evidence abuse. Local methamphetamine producers, often against them. Caucasians, steal precursor chemicals from retail stores in the region. Drug-related thefts of various metals are Dr u g -Re l a t e d Cr i m e increasing in the region. Rising metal prices in recent years have made the theft of recyclable Violent and property crimes in the Rocky metals more profitable. According to law enforce- Mountain HIDTA region are often associated with ment, increasing amounts of aluminum, bronze, the distribution and abuse of illicit drugs, par- copper, and stainless steel are being stolen by ticularly methamphetamine and crack cocaine. drug abusers and sold for cash to junk dealers, Methamphetamine and crack cocaine distributors salvage yards, and recycling businesses to fund commonly commit violent crimes such as assault, drug purchases (particularly methamphetamine carjacking, drive-by shooting, home invasion, and purchases). armed robbery to establish or maintain control of local drug markets. Abusers of cocaine, heroin, Violent crime associated with retail drug dis- and diverted pharmaceuticals often commit tribution by street gangs, primarily African Amer- crimes such as identity theft, retail fraud, burglary, ican and Hispanic street gangs, is one of the pri- robbery, and theft to obtain drugs or money to mary public safety concerns for law enforcement purchase drugs; methamphetamine abusers also

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in the HIDTA region. Many of these gangs are Cocaine abuse has increased in the HIDTA well-established in metropolitan areas throughout region—particularly the abuse of crack cocaine in the region and are starting to expand their drug major metropolitan areas. The demand for both distribution operations into suburban and rural powder and crack cocaine has surged in some areas. Members of these gangs pose a considerable areas of the Rocky Mountain HIDTA region, a threat because they often engage in violent activi- development that may be the result of abusers ties to protect their drug operations and expand switching from methamphetamine to cocaine, their territories. Street gangs in the region use drug which they perceive as being less harmful to their sales as their primary funding source to conduct health. The rising demand may also reflect a new other gang-related activities. Denver law enforce- trend reported by law enforcement officials: an ment officials report that most criminal street gang increase in the number of younger illicit drug activity involves street-level drugs sales, assaults, users who choose to experiment with cocaine robberies, burglaries, and shootings. Law enforce- rather than methamphetamine. This surge in ment agencies in the region report high levels of cocaine abuse may be the result of years of law violence associated with crack cocaine and ice enforcement and public awareness programs methamphetamine, drugs commonly distributed targeting methamphetamine and alerting potential by street gang members. users to the short- and long-term consequences of methamphetamine abuse. Consequently, new illicit drug users now view methamphetamine as Ab u s e a “full-time” drug with dangerous consequences, while cocaine is viewed as an “occasional, casual Ice methamphetamine is abused at particularly drug” without long-term health consequences. high levels throughout the Rocky Mountain HIDTA region. Since 2002 there has been a steady increase Mexican black tar and brown powder heroin in the number of methamphetamine-related treat- availability and abuse are rising in some areas ment admissions to publicly funded facilities in of the region, increasing the threat posed by the the region. According to the Substance Abuse and drug. Many drug task forces throughout the Rocky Mental Health Services Administration (SAMHSA), Mountain HIDTA region are reporting increased Treatment Episode Data Set (TEDS), the number of availability and demand for heroin. For example, treatment admissions to publicly funded facilities law enforcement authorities and public health for amphetamines (including methamphetamine) professionals in Colorado Springs and Denver; increased from 2002 to 2006 in each of the states Helena, Montana; Provo, Salt Lake City, and in the Rocky Mountain HIDTA region. Specifically, St. George, Utah; and western Wyoming have treatment admissions increased from 2,248 to 4,549 reported increased heroin distribution and abuse in Utah, from 695 to 1,081 in Wyoming, from in their jurisdictions. This increase is partly the 2,590 to 5,952 in Colorado, and from 938 to 1,104 result of the emergence of new, younger ado- in Montana. According to law enforcement officials, lescent heroin abusers (approximately age 16) methamphetamine abuse in the Rocky Mountain in the region. These younger abusers often start HIDTA region has a direct correlation to increas- by using prescription narcotics, later progressing ing levels of violence, property crime, and child to heroin because of availability and cost factors. abuse and neglect. In addition, methamphetamine Some abusers are also using heroin and cocaine abuse severely taxes the resources of public health at the same time. In early 2007 eight heroin- departments, treatment centers, and social service related deaths occurred in Colorado; two of the agencies in the region. The highly addictive nature deaths involved speedballs (a combination of of methamphetamine requires longer treatment heroin and cocaine). programs and results in high recidivism rates that further burden treatment centers in the area. Marijuana is the most widely available and abused drug in the region. Commercial-grade

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Mexican marijuana is the primary type abused in that remain in the Rocky Mountain HIDTA region the region; however, with the rise in availability are often laundered by traffickers through struc- of high-potency marijuana, abuse of the drug has tured bank transactions, cash-intensive front busi- increased, particularly among wealthier individu- nesses, and the purchase of tangible assets. als who are willing to pay higher prices for more potent marijuana. Bulk cash transportation is the most common method used by traffickers to move illicit proceeds The widespread diversion and abuse of from the Rocky Mountain HIDTA to drug source pharmaceutical drugs are a significant and rapidly areas. Mexican DTOs use major drug markets growing threat to the Rocky Mountain HIDTA in the Rocky Mountain HIDTA region as staging region. Abusers, primarily Caucasians ranging areas to consolidate large amounts of bulk cur- from 16 to 40 years of age, and independent rency that they derive from local wholesale drug distributors of pharmaceutical drugs such as Oxy- transactions and from wholesale transactions with Contin, Percocet, Percodan, Valium, and Lortab other markets supplied from the region. Mexican obtain these drugs through forged prescriptions, DTOs generally transport illicit drug proceeds copied or scanned prescriptions, doctor-shopping, from secondary markets to consolidation points in unscrupulous physicians, theft from family and and near Colorado Springs, Denver, and Salt Lake friends, and robberies of retail pharmacies and City prior to transporting the money in bulk to hospitals. Some abusers use Internet communica- areas at or near the U.S.–Mexico border. Mexican tions to facilitate pharmaceutical drug purchases. DTOs compartmentalize their drug distribution Some doctors prescribe methadone, often as a and money laundering operations by limiting replacement for OxyContin in pain management. members’ involvement to one specific responsi- Diverted methadone is a particular concern for bility and allocating tasks to specific cells. These public health officials in the region. Because the compartmentalized cells minimize risk to the drug is slower-acting than other narcotics, abusers entire organization in the event that one or more sometimes increase the dosage to hasten the ef- members are arrested. In such an operation, one fects, an action that often leads to overdose. cell transports a particular drug, such as cocaine, from Mexico or the Southwest Border area to dis- MDMA availability is rising in certain parts tribution centers in Denver, Colorado Springs, or of the region, such as Boulder County, Colorado. Salt Lake City. A separate cell transports currency Most of the MDMA available in the region is pro- in bulk from those cities to Mexico through south- duced in Canada and is sometimes combined with western states. Asian DTOs and other traffickers methamphetamine. This combination of MDMA who transport illicit drugs from Canada into the and methamphetamine, known as Juiced E or E region also transport their illicit proceeds in bulk Plus, is abused primarily by teenagers and young to source locations. adults and is especially dangerous; most young people seeking treatment state that they were un- Mexican DTOs also use MSBs to electroni- aware that the MDMA they were taking contained cally transfer illicit drug proceeds to areas along methamphetamine. the U.S.–Mexico border and into Mexico. Some Mexican DTOs operate MSBs and hire Mexican nationals in groups of 15 to 30; these individu- Il l i c i t Fi n a n c e als receive as little as $20 per day to transmit funds to locations in the Southwest Border area. Bulk cash shipments and money services Additionally, in some areas of the HIDTA region, businesses (MSBs) are the primary methods used law enforcement officials report that bulk currency by DTOs to move illicit drug proceeds out of the shipments have decreased and that wire transfers Rocky Mountain HIDTA region to drug source to Mexico, primarily regular transfers in small locations in Mexico and Canada. Drug proceeds amounts, have increased.

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Drug proceeds that remain in the Rocky Significantly lower levels of methamphet- Mountain HIDTA region are often laundered by amine production in the Rocky Mountain HIDTA traffickers through cash-intensive front businesses region will continue to reduce the resources and the purchase of tangible assets. As the Hispan- needed to remediate laboratory sites; however, ic population has increased, businesses that cater the costs associated with treatment for metham- to this segment of the population have emerged. phetamine addiction will remain high because of Most of these businesses are legitimate; however, the increased availability and abuse of Mexican the primary purpose of some is to launder illicit ice methamphetamine. drug money. These businesses concentrate primarily on cash-intensive transactions and include Demand for powder cocaine will increase clothing and dry goods stores, music stores, throughout the HIDTA region; however, crack restaurants, auto body detail shops, and stereo cocaine abuse will be the predominant form of installation shops. cocaine abuse, especially in large metropolitan areas. The impact that former methamphetamine Retail-level drug distributors, including African abusers will have on cocaine abuse statistics as American, Asian, and Hispanic street gang mem- they switch from methamphetamine to cocaine is bers, rarely engage in the bulk transport of illicit an intelligence gap. drug proceeds from the HIDTA region. Instead, they typically use proceeds generated from retail- Asian DTOs (primarily Vietnamese) and, to level drug distribution to operate cash-intensive a lesser extent, Caucasian criminal groups will retail businesses through which they commingle increase indoor cannabis cultivation operations drug proceeds, or they purchase expensive per- in the Rocky Mountain HIDTA region. Rising sonal items such as jewelry, luxury vehicles, and demand for high-potency marijuana, high profit- real estate. ability, and a desire by wholesale distributors to eliminate transportation costs and loss of the product while en route from Canada and domes- Ou t l o o k tic distribution centers outside the HIDTA region will contribute to this increase. Moreover, illicit Mexican DTOs will continue to dominate cannabis cultivators will use provisions of state the distribution of methamphetamine, powder medicinal marijuana laws to attempt to legitimize cocaine, heroin, and marijuana in the Rocky their grow operations. Mountain HIDTA region. These organizations will capitalize on existing distribution networks and their ability to blend in with the growing Hispanic population to expand their influence beyond large metropolitan areas into secondary markets and more rural areas where law enforcement agencies have fewer resources to counter the threat. The reliance of retail distributors on Mexican wholesale suppliers will continue to strengthen control by wholesalers over the primary and secondary markets in the HIDTA region. Mexican DTOs will continue to use the Rocky Mountain HIDTA region as a staging area for methamphetamine, cocaine, heroin, and marijuana distribution as they develop markets in other areas of the country.

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Montana So u r c e s Central Montana Drug Task Force Great Falls City Police Department Local, State, and Regional Missoula County Drug Task Force Missouri River Drug Task Force Colorado Montana Highway Patrol 16th Judicial Drug Task Force Northwest Drug Task Force 22nd Judicial District Drug Task Force Aurora Police Department Drug Unit Utah Boulder County Drug Task Force Cache/Rich Drug Task Force Colorado Bureau of Investigation Carbon County Narcotics Task Force Colorado Department of Corrections Central Utah Drug Task Force Colorado Department of Human Services Davis Metro Narcotics Strike Force Alcohol and Drug Abuse Division Emery County Drug Task Force Colorado Department of Public Health and Environment Midvale Police Department Colorado Department of Public Safety Ogden/Weber Gang Task Force Colorado Bureau of Investigation Salt Lake City Police Department Pueblo Region Laboratory Narcotics Unit Colorado Springs Police Department Fusion Center Gang Unit Salt Lake County Metro Gang Unit Metro Vice, Narcotics and Intelligence Salt Lake County Sheriff’s Office Sand Creek Division Taylorsville Police Department Colorado State Patrol Tooele Drug Task Force Interdiction Unit Utah County Major Crimes Task Force Delta/Montrose Drug Task Force Utah Department of Health and Human Services Denver Police Department Utah Department of Public Safety Crime Laboratory State Bureau of Investigation Gang Bureau Special Investigations Vice and Drug Control Bureau Utah Highway Patrol Eagle County Drug Task Force Wasatch Back Narcotics Enforcement Team Eastern Colorado Plains Drug Task Force Washington County Drug Task Force Front Range Task Force Weber-Morgan Narcotics Strike Force Grand-Routt-Moffat Counties Narcotics Enforcement Team West Valley Police Department Larimer County Drug Task Force Wyoming Longmont Police Department Drug Unit Metro Gang Task Force Cheyenne Police Department North Metro Drug Task Force Central Enforcement Team Pueblo Police Department Wyoming Department of Health San Luis Valley Drug Task Force Substance Abuse Division Southern Colorado Drug Task Force Wyoming Division of Criminal Investigation South Metro Drug Task Force Central Enforcement Team Southwest Drug Task Force Northeast Enforcement Team Summit County Drug Task Force Northwest Enforcement Team Two Rivers Drug Enforcement Team Southeast Enforcement Team Vail Police Department Southwest Enforcement Team Weld County Drug Task Force Wyoming Highway Patrol Western Colorado Drug Task Force West Metro Drug Task Force

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Federal Executive Office of the President Office of National Drug Control Policy Rocky Mountain High Intensity Drug Trafficking Area Eastern Montana HIDTA Drug Task Force U.S. Department of Agriculture Forest Service U.S. Department of Health and Human Services Substance Abuse and Mental Health Services Administration Office of Applied Studies Treatment Episode Data Set U.S. Department of Homeland Security U.S. Customs and Border Protection Havre Sector Office of Border Patrol Spokane Sector Sweetgrass Port of Entry U.S. Department of Justice Criminal Division Organized Crime Drug Enforcement Task Force Drug Enforcement Administration Denver Field Division Salt Lake City District Office Metro Narcotics Task Force Colorado Springs Resident Office Grand Junction District Office El Paso Intelligence Center National Seizure System Federal Bureau of Investigation Blackfeet Safe Trails Task Force, Montana Denver Field Office Missoula Resident Agency, Montana U.S. Attorneys Offices District of Colorado District of Wyoming U.S. Marshals Service District of Montana

Other www.Bonnercountydailybee.com www.Desertnews.com www.dsamh.utah.gov www.jacksonholestartrib.com www.Rockymountainnews.com

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Drug Market Analysis 2008 Rocky Mountain High Intensity Drug Trafficking Area

NATIONAL DRUG INTELLIGENCE CENTER U.S. DEPARTMENT OF JUSTICE

070908 This document may contain dated information. It has been made available to provide access to historical materials.