Philadelphia/Camden High Intensity Drug Trafficking Area Drug Market

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Philadelphia/Camden High Intensity Drug Trafficking Area

Drug Market Analysis 2009

Questions and comments may be directed to New England/New York/New Jersey Unit, Regional Threat Analysis Branch. 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.adnet.sgov.gov RISS ndic.riss.net LEO https://www.leo.gov/http://leowcs.leopriv.gov/lesig/ndic/index.htm NATIONAL DRUG INTELLIGENCE CENTER U.S. DEPARTMENT OF JUSTICE 031009 This document may contain dated information. It has been made available to provide access to historical materials. ARCHIVED

Product No. 2009-R0813-027 March 2009

Philadelphia/Camden High Intensity Drug Trafficking Area

Drug Market Analysis 2009

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.

NATIONAL DRUG INTELLIGENCE CENTER U.S. DEPARTMENT OF JUSTICE

This document may contain dated information. It has been made available to provide access to historical materials. Philadelphia/Camden ARCHIVED High Intensity Drug Trafficking Area

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national drug intelligence center ii This document may contain dated information. It has been made available to provide access to historical materials. Drug Market Analysis 2009 ARCHIVED Philadelphia/Camden

Table of Contents

Preface...... 1 Strategic Drug Threat Developments...... 2 HIDTA Overview...... 2 Drug Threat Overview...... 3 Drug Trafficking Organizations...... 4 Production...... 7 Transportation...... 7 Distribution...... 10 Drug-Related Crime...... 12 Abuse...... 13 Illicit Finance...... 14 Outlook...... 15 Sources...... 17

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national drug intelligence center iv This document may contain dated information. It has been made available to provide access to historical materials. Drug Market Analysis 2009 ARCHIVED Philadelphia/Camden

Preface

This assessment provides a strategic overview of the illicit drug situation in the Philadelphia/Camden (PC) 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 policy- makers, resource planners, and law enforcement officials with a focused discussion of key drug issues and developments facing the PC HIDTA.

Figure 1. Philadelphia/Camden High Intensity Drug Trafficking Area

ME New Brunswick VT ME NH North Brunswick NY MA East Brunswick CT RI PA ReadingNJ 476 MD PENNSYLVANIA 95 WV DE

VA Area of Ewing Mercerville Philadelphia/ Trenton NC Camden HIDTA Levittown 276 195 e ik Norristown p rn u Lakewood T PHILADELPHIA y e rs e 76 95 J w 76 e Philadelphia 295 N NEW JERSEY Radnor Pennsauken Toms River 476 CHESTER DELAWARE Drexel Hill Lebanon PHILADELPHIA Camden State Forest INTERNATIONAL Chester

42 ke pi CAMDEN Wilmington rn Tu 495 y se DELAWARE 295 er J ew Wharton N State Forest MARYLAND Newark 95

A t la n t Toll Road ic Major City* C 55 i Interstate ty y E a x 250,000 + p w State Highway re s r k sw Pa a HIDTA County y e 50,000 - 249,999 t

a State Forest t S 25,000 - 49,999 Vineland D n e e l a d International Airport w r a a r e G * By Census 2000 Population R iv e r Millville

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Strategic Drug Threat HIDTA Overview Developments The PC HIDTA region comprises Chester, • Mexican drug trafficking organizations Delaware, and Philadelphia Counties in Pennsyl- (DTOs) are becoming more influential in the vania and Camden County in New Jersey. The illicit drug trade in the PC HIDTA region. PC HIDTA was designated in 1995 to address the They transport large amounts of cocaine, threat posed by illegal drugs and to increase the heroin, and marijuana for Colombian and safety and quality of life in the region by measur- Dominican DTOs, the predominant cocaine ably reducing drug-related crime and violence. and heroin traffickers in the region. Mexican The HIDTA region and surrounding counties DTOs also are increasingly transporting large (Bucks and Montgomery Counties in Pennsylva- quantities of high-purity ice methamphet- nia and Burlington and Gloucester Counties in amine into the region for local distribution. New Jersey) comprise the Philadelphia metropolitan area, which has an estimated population of • Dominican DTOs and criminal groups also more than 5.1 million. As such, the Philadelphia are becoming more influential in the illicit metropolitan area is the fifth-largest in the United drug trade in the PC HIDTA region. They States and the second-largest on the East Coast. are traveling to the Southwest Border area to Approximately 100 million people—more than a obtain large quantities of cocaine and heroin third of the U.S. population—live within a day’s for transport to the HIDTA region, and are drive of Philadelphia, providing many distribu- developing sources of illicit drugs in the tors and abusers ready access to illicit drugs Caribbean region. distributed in the HIDTA region. • Cocaine availability in the PC HIDTA The PC HIDTA region is ethnically diverse region fluctuated the past year. The region and is home to more than 166,000 foreign-born experienced a significant decline in cocaine residents. This factor helps many drug traffickers availability during the first half of 2007 and assimilate in communities and mask their illicit returned to previous levels during the second activities. Philadelphia has the second-largest half of 2007. Cocaine availability declined Jamaican population and the fourth-largest again in the first quarter of 2008 and re- African American population in the nation. In mained lower through the end of June. Law recent years the Hispanic and Asian American enforcement reporting on cocaine availabil- (Chinese, Korean, and Vietnamese) populations ity and prices indicates that cocaine is still have significantly increased. Hispanics, mostly in short supply in Philadelphia and southern Puerto Ricans, have settled throughout the city, New Jersey. especially around El Centro de Oro, an area in the east side of North Philadelphia. Philadelphia • Street gang activity is increasing in the PC now has the third-largest Puerto Rican popula- HIDTA region and is expanding from the tion in the continental United States. The Asian inner cities to suburban and some rural areas. population, once concentrated in Philadelphia’s Many Bloods gang members are moving into thriving Chinatown, is expanding throughout the these suburban and rural areas from north- region. The majority of Camden residents are ern and central New Jersey cities to recruit African American; however, the local Hispanic members and create new or take over estab- population is rapidly increasing, especially in the lished drug markets; as a result, drug-related East Camden section of the city. violent crime is increasing in these areas.

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The HIDTA region has a well-developed transportation infrastructure (including interstate Fluctuations in Cocaine Availability highways, passenger rail and bus services, an Cocaine availability in the PC HIDTA region international airport, and a seaport) that is ideally fluctuated during 2008, according to law en- suited for the movement of illicit drugs and drug forcement reporting. The region experienced proceeds to and from the region. Interstate 95, a significant decline in cocaine availability the major north-south route on the East Coast, is during the first half of 2007, most likely the the highway most frequently used by traffickers result of local law enforcement successes to transport drugs to the area; they generally use and large seizures of the drug in Mexico. Co- this interstate to supply illicit drugs to the region caine availability returned to previous levels from New York, New York; Atlanta, Georgia; during the second half of 2007. However, cocaine availability declined again in the first and Miami, Florida. Traffickers also transport quarter of 2008 and remained lower through illicit drugs to the region from the West Coast, the end of June. Law enforcement officials Southwest Border states, and Canada, using report that in the second quarter of 2008, virtually every roadway leading to the area. Drug repeated attempts to purchase kilogram shipments arriving in the PC HIDTA region typi- quantities were unsuccessful due to short- cally are broken down into smaller quantities for ages of cocaine in those amounts. In June local distribution within the region or transporta- 2008 law enforcement officials in the PC tion to other cities throughout Pennsylvania, New HIDTA region contributed to the area’s co- Jersey, and Delaware. caine shortages by making a 340-kilogram seizure of the drug—the largest cocaine seizure in Philadelphia history. Reporting for Drug Threat Overview the third quarter of 2008 indicates disruptions to traditional cocaine supply routes Cocaine (particularly crack), heroin, mari- from Mexico as well as disruptions to alter- juana, and controlled prescription drugs (CPDs) native routes from other areas, such as the pose significant drug threats in the HIDTA region. Caribbean. Prices for kilogram quantities of High levels of violent and property crime asso- cocaine remain high and increased between ciated with crack trafficking and the social and $17,000 and $32,000 during the first quarter health consequences associated with cocaine and of 2008 to between $22,000 and $32,000 heroin abuse severely tax law enforcement and during the second quarter. In November public health resources in the region. Cocaine, 2008, law enforcement officials in the region reported that the price of kilogram quanti- especially crack, is the primary drug-related cause ties of cocaine had increased to between of deaths, emergency department visits, and treat- $35,000 and $38,000. ment admissions to publicly funded facilities in Philadelphia. Heroin is frequently abused in the HIDTA region, and its abuse is spreading to new larger doses or injecting more frequently. Commer- and younger populations. Distributors are target- cial-grade Mexican marijuana is the most widely ing customers in smaller towns and rural areas to available and abused illicit drug in the region; gain market share. The purity of South American increasing availability of high-potency marijuana, (SA) heroin, the predominant type available in the both Canadian and locally produced, is drawing region, is relatively high but has been gradually new users to the drug. The abuse of CPDs is in- decreasing over the past several years. Declining creasing among teenagers and young adults in the heroin purity has contributed to local abusers seek- region. Many teens believe that drugs prescribed by ing alternative methods of abuse, such as injecting a doctor are not as harmful as illegal drugs such as

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cocaine, heroin, and methamphetamine and, therefore, are not as dangerous. Drug Trafficking Organizations, Criminal Groups, and Gangs Other illicit drugs pose varying threats to the PC HIDTA region. The threat from methamphet- Drug trafficking organizations are complex amine production and abuse historically has been organizations with highly defined command- low in the area; however, an increase in meth- and-control structures that produce, transport, and/or distribute large quantities of one amphetamine availability is a growing concern or more illicit drugs. for law enforcement and public health officials. Criminal groups operating in the United This increase is being driven by the slowly rising States are numerous and range from small local production of powder methamphetamine to moderately sized, loosely knit groups that and by an influx of high-purity ice methamphet- distribute one or more drugs at the retail amine transported into the region by Mexican level and midlevel. and, more recently, Canada-based Asian DTOs. Gangs are defined by the National Alli- Other dangerous drugs (ODDs) such as MDMA, ance of Gang Investigators’ Associations PCP (phencyclidine), and LSD (lysergic acid as groups or associations of three or more diethylamide) are available and abused to vary- persons with a common identifying sign, ing degrees within the HIDTA region, mainly by symbol, or name, the members of which individually or collectively engage in criminal teens and young adults. activity that creates an atmosphere of fear and intimidation. Drug Trafficking Organizations Dominican DTOs also are increasingly distribut- ing marijuana and ice methamphetamine through- Colombian and Dominican DTOs control out the region. Colombian and Dominican DTOs much of the smuggling and wholesale distribution also employ Mexican DTOs to transport cocaine of cocaine and SA heroin in the PC HIDTA region. and heroin to the region on their behalf. Most Colombian DTOs operating in the HIDTA region are cells of larger Colombian organizations Mexican DTOs are becoming more influ- based in New York City. These larger organiza- ential in the illicit drug trade in the PC HIDTA tions and the cells that they operate supply whole- region. They have well-established transporta- sale quantities of cocaine and heroin to upper-level tion and distribution networks throughout most distribution groups, primarily Dominican DTOs. of the country, including the PC HIDTA region. Dominican DTOs control much of the midlevel Mexican DTOs and criminal groups transport cocaine and heroin distribution in the HIDTA and distribute most of the marijuana available in region and supply African American, Caucasian, the region; they also transport significant quanti- Jamaican, and Puerto Rican midlevel and retail ties of cocaine, heroin, and methamphetamine, distribution groups throughout the area. An in- including high-purity ice methamphetamine, to creasing number of Dominican DTOs are bypass- the area. Mexican DTOs transport these drugs ing sources in New York City and the HIDTA from Mexico, Southwest Border states and, region and obtaining cocaine and heroin directly increasingly, Atlanta. Mexican DTOs supply a from Mexican sources at the Southwest Border majority of the drugs they transport to the area and from sources in the Caribbean in order to low- to midlevel and retail-level distribution groups er purchase costs and increase profit margins. As a of various races and ethnicities, including Asian, result of these newly established relationships, African American, Dominican, Jamaican, and

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Puerto Rican DTOs and street gangs. They also supply illicit drugs to imprisoned gang members and outlaw motorcycle gangs (OMGs). Other DTOs and criminal groups also distribute illicit drugs at the wholesale level in the HIDTA region. Jamaican DTOs obtain marijuana supplies from Mexican and Dominican distributors, either locally or in southwestern drug markets. Jamaican DTOs and criminal groups also supply marijuana from Florida and the Caribbean

to the region. Asian DTOs, primarily Chinese and Drug Enforcement Administration Vietnamese, based in Canada have emerged as Largest Mexican Ice Methamphetamine significant producers, transporters, and distributors of MDMA and high-potency marijuana in Seizure in New Jersey History the region. Law enforcement reporting indicates On December 2, 2008, law enforcement that Chinese and Vietnamese DTOs are transport- officials with the DEA New Jersey Division, ing large quantities of MDMA and high-potency Passaic County Prosecutor’s Office, and marijuana to the region from Canada in order to Passaic County Sheriff’s Office announced supply markets throughout the area and gain a the seizure of 165 pounds of ice metham- wider customer base. phetamine worth an estimated $11 million— the largest seizure of ice methamphetamine African American, Asian, and Hispanic street in New Jersey history—and the arrest of a gangs (Asian Boyz, Bloods, Crips, Latin Kings, Texas man, a member of a Mexican DTO that Ñetas, and Sureños) are the predominant retail transports illicit drugs to New Jersey and drug distributors in the PC HIDTA region. Most surrounding areas. The man was arrested in street gangs are polydrug dealers, selling more West Paterson, New Jersey, while driving a than one type of drug at a time. Street gangs refrigerated tractor-trailer full of produce. The methamphetamine was packaged in plastic distribute primarily cocaine (powder and crack), food storage containers, wrapped in black heroin, and commercial-grade marijuana; however, duct tape, and commingled with crates of they also distribute PCP, ice methamphetamine, produce. MDMA, and high-potency marijuana. Although most gangs are polydrug distributors, some Source: Drug Enforcement Administration. concentrate their efforts on certain drugs. For instance, Bloods, Crips, and Latin Kings pre- into surrounding suburban and rural areas from dominantly distribute crack throughout the PC the inner cities. Bloods members have taken over HIDTA region. distribution areas formerly controlled by local street gangs, a situation that has led to increased According to law enforcement reporting, violence in the region. Law enforcement officials Bloods street gangs are strengthening and grow- report that Bloods street gang members are moving in the HIDTA region. Many Bloods street ing into the region from Trenton, New Jersey, to gang members have moved into Camden and recruit new members. The Bloods gang recruits South Philadelphia from northern New Jersey anyone involved in the drug trade as well as (Newark) to expand their drug distribution ter- those of any age, race, ethnicity, and background ritories; street gang activity also is expanding to increase membership and strengthen the gang.

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Power is in numbers, and Bloods members are Asian street gangs smuggle these drugs from well aware of it, as the gang is constantly recruit- Canada to New York City prior to transporting ing to increase its membership. Law enforce- them to the Philadelphia area for distribution. ment reporting indicates that Bloods members They operate primarily in southern, southwest- recruit heavily within public and private schools. ern, and northern Philadelphia. Impressionable school children, often looking to fit in, are regularly persuaded by members OMGs—most notably Pagans, Warlocks, and to join the gang. The gang also recruits heav- Outlaws—distribute retail quantities of cocaine ily in correctional facilities throughout the and manufacture and distribute retail quantities region. Eighteen federal prisons are located in of powder methamphetamine in the PC HIDTA the northeast region—half of which are located region. Many OMGs have established rela- in Pennsylvania. Three federal prisons are lo- tionships with Mexican DTOs in order to gain cated in the PC HIDTA region (Federal Deten- greater access to illicit drugs and facilitate their tion Center Philadelphia, Federal Correctional distribution operations. Institution (FCI) Fort Dix (NJ), and FCI Fairton (NJ). Additionally, numerous state, county, and Marijuana Transported by Jamaican local correctional facilities are located in the PC Nationals Seized in Delaware County HIDTA region—a situation that gives gangs such as the Bloods ample opportunity to recruit new In July 2008, law enforcement officials with Folcroft Borough, Delaware County, Penn- members. The promises of protection and status sylvania, seized 221 pounds of marijuana within the prison often induce individuals to join during a routine traffic stop and arrested the gang. Upon being released or paroled from two Jamaican nationals. The two individuals prison, many of the individuals who were recruit- were transporting the marijuana, which was ed within the prison continue their allegiance to concealed in a box in the rear of a rental the gang. truck, from Texas to Philadelphia. According to the Pennsylvania Attorney General, one Other street gangs also are increasing their of the individuals is an alleged marijuana presence in the PC HIDTA region. African dealer who smuggled drugs from Mexico to American Crips sets are growing in number, Texas for distribution in U.S. markets. The although not as significantly as Bloods. Hispanic two individuals were charged with posses- street gangs such as Latin Kings, Mara Salvatru- sion with intent to deliver marijuana, crimi- cha (MS 13), and Trinitarios, a Dominican street nal conspiracy, corrupt organizations, and gang, are showing an increasing presence in related charges. correctional facilities and on the streets of the PC Source: Pennsylvania Attorney General’s Office. HIDTA region. Law enforcement officials report that Trinitarios street gangs in the region have been “under the radar,” because most law enforcement attention has been paid to other gangs such as Bloods or Crips. Asian street gangs have increased their presence in the PC HIDTA region and are emerging as key suppliers of MDMA and Canadian high-potency marijuana. In many cases

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increasing, particularly in rural areas adjacent to Trinitarios Street Gang the HIDTA region, such as the Pocono Mountains The Trinitarios (meaning the Trinity or Spe- in northeastern Pennsylvania. Most clandestine cial One) street gang was formed as a methamphetamine laboratories in and near the PC protection gang for Dominican inmates in HIDTA region are operated by OMGs, particularly New York prisons during the early 1990s. Pagans and Warlocks, that typically produce only Members, upon leaving prison, banded retail quantities of the drug; local independent together as a street gang, calling them- Caucasian producers also produce limited amounts selves Trinitarians/Trinitarios to distinguish of methamphetamine, mostly for personal use. the gang from other Dominican street gangs in New York. While Trinitarios is primarily a Indoor cannabis cultivation appears to be Dominican gang, many Puerto Rican and increasing in the HIDTA region as marijuana South American members have joined the traffickers attempt to attain higher profits through gang’s ranks. Trinitarios members do not production of high-potency marijuana and take have affiliations with any other gangs and advantage of a perceived lack of law enforce- are rivals of Bloods, Crips, Latin Kings, MS ment scrutiny of indoor cannabis grow sites in 13, and Ñetas as well as other Dominican street gangs. Trinitarios members reportedly the PC HIDTA region. Asian DTOs and criminal have migrated to other areas of the country, groups in the region, primarily Vietnamese, are such as Alaska, Connecticut, Florida, Illinois, increasingly replicating methods used at indoor Massachusetts, New Jersey, North Carolina, cannabis grow sites in Canada, such as using Ohio, Pennsylvania, and Rhode Island. Trini- elaborate hydroponic equipment, bypassing tarios members are establishing a reputation electrical meters, and using entire buildings for for extreme violence in the PC HIDTA region. grow operations. For example, some Asian DTOs in the HIDTA region have purchased high-priced houses in residential neighborhoods to use as Production grow sites. The houses are typically gutted, and all space is used for growing cannabis. Illicit drug production in the PC HIDTA region is limited to the conversion of powder cocaine to crack and to occasional methamphet- Transportation amine and marijuana production. The PC HIDTA region’s expansive transpor- Crack conversion takes place in the HIDTA tation infrastructure is often exploited by DTOs region, particularly in urban areas. African Amer- to transport drugs into and throughout the region. ican street gangs and independent dealers convert Most illicit drugs available in the HIDTA region powder cocaine to crack in residential settings, are transported from New York City in private usually in the vicinity of the intended market. vehicles along I-95; traffickers also use this route to transport illicit drugs through the region to Powder methamphetamine production in markets in eastern Pennsylvania (Allentown, the HIDTA region is limited and generally takes Harrisburg, Lancaster, Reading, and York) as place in the rural areas of the region. Seizure data well as Delaware, southern New Jersey, and the indicate that only a few methamphetamine labo- eastern shore of Maryland. Traffickers also trans- ratories have been seized over the past several port illicit drugs into the region along I-95 from years in the region; however, law enforcement Miami and Atlanta. According to law enforce- intelligence and investigative information sug- ment reporting, Atlanta is increasingly being gest that methamphetamine production is slowly

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used as a major distribution center for cocaine, marijuana, and methamphetamine sold in the PC PC HIDTA Interdiction Initiative Reveals HIDTA region. For example, Mexican DTOs are Cocaine Shipments From Puerto Rico increasingly transporting drugs in tractor-trailers In April, May, and June 2008, several pack- from Atlanta to the PC HIDTA region. Addi- ages containing cocaine were intercepted tionally, Philadelphia-based African American en route to locations in Philadelphia from street gang members are increasingly traveling Puerto Rico. The packages, appearing to to Atlanta to pick up drugs for distribution in the contain electronics or toy boxes, were pro- region. Traffickers also are increasing their use of fessionally wrapped and difficult to identify. package delivery services to smuggle drugs from For example, one package appeared to con- Atlanta to Philadelphia. tain a child’s board game; however, upon closer examination, it contained 2 kilograms Interstates 76, 276, and 476 also are signifi- of cocaine. Another package appeared to cant drug transportation routes to and from the contain a toy set box; however, its contents, HIDTA region. Traffickers typically use these 2 kilograms of cocaine, were packed with routes when transporting illicit drugs by vehicle spray foam to preclude movement and to the region from the West Coast, Southwest easy detection. A third package contained Border states, and Canada. Law enforcement two boxes for wireless routers; upon examination, each box contained 2 kilograms reporting suggests that, in addition to interstate of cocaine. According to the Philadelphia highways, traffickers are increasingly using Police Department, Parcel Interdiction Team, indirect routes such as state routes and sec- packages containing illicit drugs have been ondary roads to transport drugs to the area. In found in shipments sent through all the pri- doing so, traffickers generally use common GPS vate package delivery services and the U.S. (geographic positioning system) technology to Postal Service. navigate indirect routes. Source: Philadelphia/Camden High Intensity Drug Trafficking Area. Traffickers also transport drugs into and throughout the HIDTA region using rail, air, and Air Jamaica flight bound for Philadelphia dis- maritime conveyances. They exploit Philadel- covered 5 pounds of cocaine and 4.5 pounds of phia’s extensive intercity and regional passenger marijuana hidden in the aircraft’s galley. The drugs rail systems, which provide numerous departures were wrapped tightly in brown tape and divided and arrivals from Philadelphia’s 30th Street Sta- into eight packages; the source and destination of tion to Baltimore, Maryland; New York City; and the drugs were undetermined. Federal and state Washington, D.C. Newark- and Trenton-based authorities at the Philadelphia International Airport street gangs in New Jersey routinely use com- indicate that multikilogram shipments of heroin muter rail services to transport cocaine, currency, from Colombia and the Dominican Republic are and gang members to Camden. occasionally discovered. The shipments are typically carried by couriers who are met at the airport Drug traffickers sometimes use the Philadel- or instructed to proceed to a hotel in the Philadel- phia International Airport to smuggle drugs into phia area to turn over the heroin. In one investiga- the HIDTA region because of its direct connection tion, 4 kilograms of heroin were interdicted; the to many foreign and domestic locations, its high drug had been sewn into the lining of jeans carried volume of travelers and cargo, and its proximity to in the courier’s luggage. Couriers may also swallow major highways and interstates, including I-95. For pellets of heroin to transport the drug to the region. example, in July 2008 a crew member aboard an Some traffickers use numerous couriers on

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Operation Broken Doll In September 2008 Pennsylvania Attorney General Corbett announced the breakup of a multimillion- dollar methamphetamine organization, responsible for trafficking as much as $6.6 million worth of ice methamphetamine from Mexico to the city of Philadelphia and Bucks, Chester, and Montgomery Counties. The operation, known as Operation Broken Doll, began in January 2008 and resulted in the arrests of 13 DTO members. The methamphetamine was produced in Mexico and transported to California, where members of the DTO packaged and concealed pound quantities of the drug inside porcelain dolls, which were then shipped to Philadelphia, using a commercial shipping company. Most of the methamphetamine shipments were sent to a local shoe store in center city Philadel- phia. DTO members routinely picked up the dolls at the shoe store and then delivered the dolls to a private residence, where the drugs were removed and repackaged into smaller quantities for further distribution. The DEA Philadelphia Field Office Group One, Pennsylvania Attorney General’s Bureau of Narcotics Investigation Office, the Chester County District Attorney’s Office, Chester County Sher- iff’s Office, and the Philadelphia Police Department took part in the investigation.

Source: Pennsylvania Attorney General’s Office.

flights with several connections in a relay style, in Traffickers employ U.S. mail and package which one courier hands the package to another at delivery services to ship illicit drugs into the re- a midway stop. Additionally, some traffickers have gion. Law enforcement officials in the PC HIDTA reportedly employed handicapped individuals, or region report that traffickers are increasing their persons posing as handicapped, to transport drugs use of package delivery services to smuggle aboard commercial flights in the belief that they drugs from Atlanta to Philadelphia. Reporting may receive less scrutiny during security screening. also indicates an increase in the number of packages containing cocaine arriving in the region Traffickers also use the Port of Philadel- from the Caribbean. This may be an indication phia—which comprises the waterfront areas that traffickers are attempting to create alterna- of Camden, Philadelphia, and Wilmington, tive cocaine supply routes because of disruptions Delaware—to smuggle drugs into the HIDTA to the traditional routes by law enforcement. region. Traffickers reportedly exploit maritime Many drug traffickers prefer to use package vessels that arrive in the port from numerous delivery services because they can monitor the foreign countries, including high-risk drug source shipments on the Internet. According to law en- and transit countries such as Colombia, the forcement officials, when a shipment is delayed, Dominican Republic, Jamaica, and Venezuela. some traffickers assume that the package has For example, in August 2008 law enforcement been intercepted by law enforcement and refuse officers from U.S. Immigration and Customs En- delivery out of fear of arrest. forcement (ICE) and DEA boarded a Colombian cargo container ship at the Port of Philadelphia Traffickers use a variety of concealment and seized 6,500 grams of heroin and 1.5 grams methods when transporting drugs to avoid detec- of cocaine. In addition, cruise ship passengers, tion and increase the likelihood of successful crew members, and stevedores have reportedly delivery. Drugs such as cocaine, heroin, mari- smuggled illicit drugs into the PC HIDTA region juana, methamphetamine, and diverted CPDs that aboard cruise ships traveling between Philadel- are transported overland in private and commer- phia and various Caribbean island nations, many cial vehicles are often concealed by traffickers of which are drug transit countries.

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in oil pans, manifolds, brake drums, drive shafts, Rican DTOs as well as to independent dealers, radiators, and gas tanks. Additionally, many traf- street gangs, imprisoned gang members, and fickers construct false compartments in vehicles, OMGs. Dominican DTOs also supply smaller some of which are operated electronically. Traf- cities in eastern Pennsylvania, such as Allentown, fickers also hide drugs in various items such as Bethlehem, Easton, and Reading, and suburban furniture, stuffed animals, blankets, women’s and rural areas, such as Hazelton, Sunbury, and undergarments, and baby diapers or commingle the Pocono Mountains. them among shipments of legitimate goods. Some traffickers conceal commercially available GPS Mexican DTOs distribute wholesale quanti- tracking devices in illicit drug shipments. They ties of cocaine, most of the commercial-grade can then use the Internet to track the shipments marijuana, and significant quantities of powder and identify delays or deviations from the selected and ice methamphetamine in the HIDTA re- route, which may lead the trafficker to conclude gion. They use well-established, national-level that the shipment has been seized or compro- transportation networks to supply these drugs to mised. Some traffickers transport heroin mixed African American, Dominican, Jamaican, and with other substances, such as shampoo and soap, Puerto Rican midlevel and retail distributors. Ad- capitalizing on the unique chemical characteristics ditionally, some Mexican DTOs use Atlanta as a of the drug that enable it to be stored in solution— distribution center for cocaine and methamphet- this requires the recipient to have some ability in amine destined for the region. chemistry to extract the drug. Traffickers who use Vietnamese criminal groups distribute package delivery services as a mode of transporta- MDMA, high-potency marijuana, and metham- tion sometimes conceal illicit drugs in laptop com- phetamine in the region that they obtain from puters, book bindings, ceramic statues, candles, Canada-based Asian DTOs. These criminal candy bars, and other items. They also ship drugs groups supply high-potency marijuana to a spe- such as cocaine, heroin, and methamphetamine in cific customer base, particularly affluent indi- flat, commercial “letter envelopes” in an attempt viduals who are willing to pay more for higher- to elude law enforcement or package handlers who quality marijuana. Additionally, Vietnamese are adept at discovering contraband shipped in criminal groups in the region sell wholesale larger boxes. quantities of MDMA and retail quantities of high-purity ice methamphetamine. Distribution Neighborhood-based African American and Various DTOs, criminal groups, gangs, and Hispanic street gangs control retail drug distri- independent dealers of differing races/ethnici- bution in the PC HIDTA region; however, law ties distribute illicit drugs at the wholesale level, enforcement reporting indicates that some street midlevel, and retail level in the PC HIDTA gangs are becoming involved in wholesale-level region. (See Table 1.) drug trafficking, aided by their connections to DTOs, particularly Mexican and Asian DTOs. Colombian and Dominican DTOs based These gangs often distribute crack, heroin, and in New York City are the principal wholesale other illicit drugs in open-air drug markets. Vari- distributors of cocaine and SA heroin in the PC ous OMGs also serve as retail-level drug dis- HIDTA region. They supply midlevel and retail tributors. According to law enforcement officials, quantities of these drugs to African American, OMGs often use bars in the region as distribution Caucasian, Dominican, Jamaican, and Puerto sites for methamphetamine and marijuana.

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Table 1. Drug Distribution Activities in the Philadelphia/Camden High Intensity Drug Trafficking Area, 2008 Wholesale Distribution Retail Distribution Group Upper Level Midlevel African American Powder cocaine and Powder cocaine, crack, heroin, and Powder cocaine, crack, heroin, and marijuana marijuana marijuana Asian Marijuana, MDMA, and ice Marijuana, MDMA, and ice Marijuana and MDMA methamphetamine methamphetamine Powder cocaine, crack, heroin, Powder cocaine, crack, heroin, Caucasian Powder cocaine, marijuana, marijuana, methamphetamine, marijuana, methamphetamine, MDMA, and diverted pharmaceuticals MDMA, and diverted and diverted pharmaceuticals pharmaceuticals

Colombian Powder cocaine and heroin Powder cocaine and heroin Powder cocaine and heroin

Powder cocaine, crack, heroin, Powder cocaine, crack, heroin, Dominican Powder cocaine and heroin marijuana, ice methamphetamine, marijuana, ice methamphetamine, and and MDMA MDMA Jamaican Powder cocaine and Powder cocaine, crack, and Powder cocaine, crack, marijuana marijuana and marijuana Powder cocaine, Powder cocaine, Mexican marijuana, and powder and marijuana, and powder and ice Powder cocaine and marijuana ice methamphetamine methamphetamine

Powder cocaine, crack, heroin, and Puerto Rican Powder cocaine and heroin Powder cocaine, crack, and heroin marijuana

Street gangs Powder cocaine, crack, heroin, Powder cocaine, crack, heroin, None marijuana, and PCP marijuana, MDMA, and PCP Outlaw motor- None Cocaine and methamphetamine Cocaine and methamphetamine cycle gangs Source: Philadelphia/Camden High Intensity Drug Trafficking Area. Many street gang members store drugs in Retail drug distribution typically takes place stash locations throughout the HIDTA region and in open-air markets. Many of these markets are then bring smaller amounts to open-air markets controlled by a particular gang or criminal group to facilitate distribution and to lower the risk of that either sells drugs at that location or collects a having large quantities of drugs seized. Many percentage of the profits from drug sales conduct- Bloods street gang members store cocaine in ed by another group. Gangs and criminal groups sparsely furnished rental properties separate from generally establish ownership of open-air markets their residences. Additionally, law enforcement through long-term drug sales in a particular area, officials in Camden report that there are approxi- by taking control through violence or threats of mately 8,000 abandoned dwelling places in the violence, or by purchasing the right to sell drugs city that are sometimes used by street gang mem- in a particular open-air market from other gangs bers to store drugs. In April 2008, law enforce- or criminal groups, often at a high price. ment officers in the PC HIDTA region uncovered

national drug intelligence center 11 This document may contain dated information. It has been made available to provide access to historical materials. Philadelphia/Camden ARCHIVED High Intensity Drug Trafficking Area

a stash house in South Philadelphia, arrested two personal networks, such as friends or family. For men (a father and a son), and seized 748 pounds example, law enforcement officials report that of cocaine. They also seized packaging materials, some criminal groups and abusers in the region a hydraulic press for making kilogram “bricks” occasionally steal CPDs from delivery trucks that of cocaine, and scales. transport the controlled drugs from manufactur- ers to wholesale or retail distributors. Addition- Street gang members and other drug distribu- ally, abusers in the HIDTA region, particularly tors in the HIDTA region use a variety of com- teenagers and young adults, increasingly are munications methods to conduct their operations. using the Internet to obtain CPDs. These individ- They increasingly use prepaid cell phones, which uals reportedly place orders with online pharma- can be purchased at a low cost and with rela- cies or distributors located throughout the United tive anonymity—factors that encourage frequent States or foreign countries. They often discuss disposal of the phones and complicate communi- transactions and place orders on web logs (blogs) cations intercepts by law enforcement. Some gang and bulletin boards, in chat rooms, or through members prefer cell phones with two-way, direct- e-mail and electronic messaging. This situation connect communication, believing that they are poses a particular challenge to law enforcement more secure from law enforcement interception. officials because individuals can exchange infor- Street gang members increasingly use Internet so- mation and consummate Internet sales quickly cial networking sites, personal web pages, online and with relative anonymity. communities and forums, and message boards to facilitate their drug trafficking operations, recruit new members, boast about gang membership or Drug-Related Crime related activities, and advertise events and house Drug-related violent crime is a significant parties. Some street gang members also use online threat in the PC HIDTA region. Ten of the 20 role-playing games to communicate with one state and local law enforcement respondents to another. This allows them to talk to each other the National Drug Intelligence Center National without being detected by law enforcement. Drug Threat Survey 2009 in the PC HIDTA CPDs often are diverted by abusers through region reported that crack was the drug most a variety of methods. Abusers in the HIDTA associated with violent crime in their jurisdic- 2 region historically acquired CPDs through doctor tions. Street gang members often use firearms shopping, forged prescriptions, or unscrupulous to demand respect, defend their turf, or acquire physicians and pharmacists working alone or in new distribution territories. Moreover, law association; however, many of these individuals enforcement officials in Camden attribute high have been dissuaded from using these methods levels of violence to attempts by the Cam- because of prescription drug monitoring pro- den Bloods street gang to take control of drug grams (PDMPs)1 and increased law enforcement markets from smaller, less organized neighbor- scrutiny. As a result, abusers have shifted to other hood gangs. Asian street gang members are

means of obtaining CPDs, such as theft, purchase 2. National Drug Threat Survey (NDTS) data for 2009 cited in from retail distributors, or acquisition through this report are as of February 12, 2009. NDTS data cited are raw, unweighted responses from federal, state, and local law enforcement agencies solicited through either the National 1. Prescription drug monitoring programs (PDMPs) are systems Drug Intelligence Center or the Office of National Drug Control in which controlled substance prescription data are collected in Policy’s High-Intensity Drug Trafficking Area (HIDTA) program. a centralized database and administered by an authorized state Data cited may include responses from agencies that are part of agency to facilitate the early detection of trends in diversion and the NDTS 2009 national sample and/or agencies that are part of abuse. HIDTA solicitation lists.

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increasing their presence in the PC HIDTA Abuse region. They often commit armed home inva- sions of Asian businessmen who, as a result of Cocaine, heroin, and marijuana are abused their distrust of traditional financial institutions, at high levels in the PC HIDTA region. Cocaine, often have large amounts of cash in their homes. especially crack, is the primary cause of drug- Additionally, law enforcement reporting in New related deaths, emergency department visits, and Jersey indicates that Trinitarios, a Dominican treatment admissions to publicly funded facilities street gang, is increasing its presence in the in Philadelphia. Heroin abuse is increasing in the region. Trinitarios members are establishing a HIDTA region; declining purity has caused some reputation for using extreme violence through- abusers to seek alternative methods of abuse, out the area. such as injecting larger doses or injecting more frequently. Heroin abuse in the region is becom- Many of the homicides in the PC HIDTA ing more common among teens and young adults, region involve individuals with a history of drug who initially inhale the drug but typically prog- use and/or arrests; however, most of the homi- ress to injection as addiction sets in. Marijuana is cides are the result of interpersonal disputes. the most widely available and commonly abused During the past decade, the number of homicides illicit drug in the region. The availability of high- in Philadelphia rose to a high of 406 in 2006 potency marijuana, both Canadian and locally and decreased to 392 in 2007 and 332 in 2008. produced, is increasingly enticing new users. (See Figure 2.) However, despite the decrease, Philadelphia’s homicide rate is one of the highest A rising number of teenagers and young among the nation’s 10 largest cities. The num- adults are abusing CPDs in the PC HIDTA ber of homicides in Camden increased from 32 region. Such abuse often occurs in social set- in 2006 to 42 in 2007 and 55 to 2008. Violence tings in which party attendees bring a number of against law enforcement officers also is a major CPDs—such as opioids, stimulants, or depres- concern to officials in the PC HIDTA region. sants—and exchange them for pharmaceuticals From October 2007 through November 2008, that other partygoers bring. This activity is three Philadelphia police officers were shot and commonly known as pharming. Many teens killed in the line of duty. believe that drugs prescribed by a doctor are not as harmful as illegal drugs such as cocaine, Figure 2. Number of Homicides heroin, and methamphetamine and, therefore, are in Philadelphia, 1998–2008 not as dangerous. However, treatment providers 450 indicate that the abuse of CPDs often serves as 406 392 400 377 348 a gateway for adolescents and young adults to 338 330 332 350 319 309 abuse other drugs, such as heroin, cocaine, and 292 288 300 methamphetamine. Once addicted to controlled 250 prescription narcotics, abusers often switch to 200 heroin because of the drug’s higher availability 150 and lower price. Similarly, abusers of controlled 100 prescription stimulants sometimes “graduate” 50 to crack abuse; treatment providers believe that 0 some abusers of controlled prescription stimulants such as amphetamines—Ritalin (meth- Source: Philadelphia Police Department. ylphenidate) or Adderall (amphetamine)—may

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begin to abuse methamphetamine if that drug York City, the Southwest Border area, Mexico, were to become more widely available. or other drug source locations. These traffickers use private vehicles, commercial vehicles, freight Methadone abuse is a developing problem in transportation companies, shipping containers, the PC HIDTA region. Availability of the drug for and package delivery services to transport and illicit use results, in large part, from patients in opi- ship their bulk cash. They often conceal bulk oid treatment programs who sell portions of their quantities of cash in hidden compartments of take-home doses of the drug. According to treat- vehicles or in shipments of commodities such as ment providers, many methadone abusers are using furniture, car parts, electronics, or produce. the drug in combination with benzodiazepines in an attempt to achieve a heroin-like effect. Many Colombian, Dominican, and Mexican DTOs methadone abusers acquire benzodiazepines from also use U.S.-based MSBs—particularly money patients who obtain the drugs by prescription, keep transmittal and check-cashing businesses—to laun- some for themselves, and then sell the rest. der proceeds, frequently in conjunction with bulk cash smuggling. These DTOs also send significant amounts of money through MSBs to Colombia, Illicit Finance the Dominican Republic, and various locations in Drug traffickers in the PC HIDTA use various Central and South America. Mexican DTOs often money laundering techniques to move and conceal wire structured amounts to collection points along illicit drug proceeds and finance their operations. the Southwest Border, where the electronic wires The means used to transfer illicit funds varies by are cashed and the money is smuggled to Mexico. group and includes smuggling bulk cash; using Colombian DTOs use prepaid credit cards money services businesses (MSBs); conducting to launder drug proceeds in the HIDTA region. electronic wire transfers; structuring bank deposits They use illicit funds to purchase prepaid credit and money order purchases; commingling drug cards that are generally redeemed in Colombia proceeds with funds generated through legitimate for pesos. Some DTOs consider this method to businesses; purchasing real estate and vehicles; be preferable to the Black Market Peso Exchange operating front businesses; and using smart cards, (BMPE)3 because it involves a lower exchange automated teller machines (ATMs), and prepaid rate. Open-system prepaid cards are payment stored value cards. Bulk cash smuggling is the mechanisms that allow cardholders to access illicit transfer method most often cited by law en- global credit and debit payment networks. The forcement in the PC HIDTA region. Law enforce- manner in which existing regulations apply to ment reporting indicates a decrease in the use of these financial products is unclear, and some of traditional financial institutions by traffickers to these products may be used without forming a launder illicit drug proceeds because the traffick- traditional account-holder relationship with a de- ers have become aware that banking officials are pository institution. This lack of account-holder readily identifying illicit financial activity through relationship enables card holders to anonymously Currency Transaction Reports (CTRs) and Suspi- transfer unlimited amounts of money across cious Activity Reports (SARs). Additionally, some global payments networks. DTOs launder drug proceeds through casinos in southern New Jersey and Pennsylvania. 3. The Black Market Peso Exchange (BMPE) is a system in which Colombian traffickers receive Colombian pesos in Colombia Colombian, Dominican, and Mexican DTOs in exchange for U.S. dollars in the United States. Peso brokers facilitate this process by selling Colombian trafficker-owned U.S. and criminal groups typically transport drug pro- dollars located in the United States at a discount to Colombian ceeds in bulk from the PC HIDTA region to New merchants, who use the funds to purchase U.S. goods.

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Many DTOs in the HIDTA region, particularly and through the use of front businesses, includ- Dominican and Asian organizations, transport ing some recording studios and businesses that drug proceeds to Atlantic City, New Jersey, where promote rap music. they launder the funds through casinos. Some DTOs are increasingly transporting drug proceeds to Pennsylvania’s casinos in Bensalem and Outlook Chester. These DTOs purchase betting chips with Mexican DTOs operating out of the south- large amounts of drug proceeds, pass some time western United States and major distribution in the casino, and then exchange their chips for centers on the East Coast, such as Atlanta, will cash. Commercial casinos, which are classified as most likely increase their wholesale distribution financial institutions and are regulated by the Bank of cocaine, heroin, and marijuana in the HIDTA Secrecy Act (BSA),4 are susceptible to money region in the coming year. Limited local metham- laundering and are often used by criminal groups phetamine production and the growing presence to launder illicit proceeds. Casinos are attractive of Mexican DTOs in the HIDTA region may also venues for money laundering schemes because lead to increased availability of Mexican ice meth- they offer many of the same financial services as amphetamine in the region. Mexican organizations banks, regularly process large volumes of cash, have well-established transportation and distri- and enable money launderers to legitimize illicit bution networks that will enable them to supply proceeds by claiming them as gambling earnings. wholesale quantities of illicit drugs to the region. Some traffickers in the region, particularly Dominican DTOs and criminal groups will Asian DTOs and criminal groups, often use cash- quite likely increase their influence in the PC intensive “front” businesses to launder illicit drug HIDTA region and become a significant threat in proceeds. Businesses such as auto repair shops, the next year. Dominican DTOs already travel to beauty and nail salons, car washes, construction the Southwest Border area to obtain large quan- companies, tattoo parlors, and travel agencies are tities of cocaine and heroin for transport to the used by traffickers to conceal illicit drug funds PC HIDTA region. They are branching out and among seemingly legitimate daily cash transactions. obtaining illicit drugs from sources in the Carib- Members of Asian DTOs and criminal groups also bean and are increasingly supplying large quan- transport drug proceeds in bulk, in the form of cash tities of marijuana and ice methamphetamine and money orders, to Canada, where they deposit throughout the region as well. them into Canadian bank accounts before electronically wire transferring the proceeds to source Street gangs, particularly Bloods, will very countries. Asian DTOs and criminal groups also likely continue to expand their influence from ur- launder drug proceeds by structuring bank deposits ban communities into suburban and rural locations and participating in real estate fraud. throughout the region to establish new markets and territories and to escape the scrutiny of urban Retail-level drug dealers in the PC HIDTA law enforcement. This expansion will most likely region often launder drug proceeds through the increase competition for market share and cause a purchase of consumer goods (clothing, expen- corresponding increase in drug-related violence. sive jewelry, and luxury vehicles) and real estate, Sporadic cocaine shortages will quite likely 4. A casino or a card club that is duly licensed or authorized to continue in the PC HIDTA region into early do business as such and has gross annual gaming revenue 2009. Disruptions to traditional cocaine supply in excess of $1 million is a financial institution under the Bank Secrecy Act (BSA). routes from Mexico and to alternative routes,

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such as those through the Caribbean, will more than likely affect cocaine availability in the region through early 2009. Indoor cannabis cultivation, particularly cultivation that yields high-potency marijuana, will most likely increase over the next year. The rising demand for high-potency marijuana and the high profit potential will quite likely entice more traffickers in the region to become involved in indoor cannabis cultivation.

national drug intelligence center 16 This document may contain dated information. It has been made available to provide access to historical materials. Drug Market Analysis 2009 ARCHIVED Philadelphia/Camden

U.S. Department of Justice Sources Bureau of Alcohol, Tobacco, Firearms and Explosives Drug Enforcement Administration State and Local Domestic Monitor Program El Paso Intelligence Center New Jersey National Seizure System Camden Police Department New Jersey Field Division New Jersey National Guard Philadelphia Field Division New Jersey State Police Federal Bureau of Investigation State Attorney General’s Office Philadelphia Office Camden County Prosecutor’s Office National Institute of Justice Arrestee Drug Abuse Monitoring Program Pennsylvania U.S. Attorneys Offices City of Philadelphia District of New Jersey Drug and Alcohol Abuse Program Eastern District of Pennsylvania Pennsylvania Attorney General’s Office U.S. Marshals Service Pennsylvania Bureau of Narcotics Investigation and U.S. Department of the Treasury Drug Control Internal Revenue Service Pennsylvania Department of Health U.S. Department of Transportation Pennsylvania National Guard Federal Aviation Administration Pennsylvania State Police Federal Highway Administration Philadelphia Medical Examiner’s Office U.S. Postal Inspection Service Philadelphia Police Department U.S. Sentencing Commission Narcotics Bureau University of Pennsylvania Police Department Other Regional Associated Press Northeast Times Middle Atlantic–Great Lakes Organized Crime The Philadelphia Inquirer Law Enforcement Network

Federal Executive Office of the President Office of National Drug Control Policy High Intensity Drug Trafficking Area Philadelphia/Camden U.S. Department of Commerce U.S. Census Bureau U.S. Department of Health and Human Services Centers for Disease Control and Prevention National Institute on Drug Abuse National Institutes of Health Community Epidemiology Work Group Substance Abuse and Mental Health Services Administration Drug Abuse Warning Network Treatment Episode Data Set U.S. Department of Homeland Security U.S. Coast Guard U.S. Immigration and Customs Enforcement

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Philadelphia/Camden High Intensity Drug Trafficking Area

Drug Market Analysis 2009