If you have issues viewing or accessing this file contact us at NCJRS.gov. u.s .. Department of Justice Office of the Attorney General Drug Trafficking A Report to The President of the United States August 3, 1989 119844 U.S. Department of Justice National Institute of Justice This document has been reproduced exactly as received from the person or organization originating it. Points of view or opinions stated In this document are those of the authors and do not necessarily represent the official position or policies of the National Institute of Justice. Permission to reproduce this i ~ SIi"" material has been granted b¥ ., PUblic Domaln/Offlce of the ~~~~nera1/US Dep-t. of to the National Criminal Justice Reference Service (NCJRS). Further reproduction outside of the NCJRS system requires permis­ sion of the~ owner. Compiled by: The United States Attorneys and The Attorney General of the United States • ----------------~---------- ~fnte nft4p l\Unmpl1 052utral Dhtll~ingtnn, 1!l. Q1. 2053U August 3, 1989 The President The White House Washington, D.C. 20500 Dear Mr. President: Recognizing that drug trafficking is the number one crime problem facing our country and the world, I asked our 9~ united states Attorneys last fall to prepare detailed reports analyzing the business structure of drug trafficking in their districts. They were requested to use all tools available to describe how these illicit enterprises operate -- not only how the kingpins employ drug producers and shippers, but how they have turned legitimate businesses such as accounting, banking, financing, and communications to use of their nefarious activities v I' am herewith transmitting to you and to Director Bennett the results of this e,ffort. The reports from the 93 U.S. Attorneys are drawn frgm intelligence files garnered from successful prosecutions conducted in their districts. These voluminous reports detail the often invisible web of drug trafficking and abuse that shroud America. It is no secret that our major metropolitan areas have long suffered from this alarming blight. However, what we learn from these reports is: no community is exempt from the ravages of the drug trade. Drug trafficking enterprises have infiltrated all of our country, from our biggest cities to the smallest villages 'and towns in our heartland. This reports documents the pervasiveness of drug trafficking, how it has spread its tentacles throughout all socioeconomic groups across the country. We knew the country was awash in cocaine and crack, but we did not expect to find significant cocaine organizations in Wyoming, heroin trafficking in Iowa, LSD consumption in rural Georgia, or methamphetamine spreading to South Carolina. The U.S. Attorneys have also painted a new portrait of organized crime, not just the traditional organizations that have been chronicled for so many years, but also the emerging groups who present equal -- if not greater -- threats. Colombian , ; ~ The President August 3, 1989 Page 2 cartels, the Bloods and the Crips, outlaw motorcycle gangs, the Asian Triads and Tongs, the Jamaican posses, and others are the contemporary "AI Capones. 1I These crime conglomerates operate with various degrees of structure and sophistication; some are on the cutting edge of international organizational technology; others rely on cultural norms and mores that have evolved over time. A common denominator, however, is their greed -- their relentless pursuit of money. In addition to detailing the magnitUde of the problem, this report highlights the work of agents and prosecutors in pursuing drug traffickers on a scale thought impossible only a decade ago. The investigations handled today are larger and more complex than ever, not only in terms of the volume of drugs seized and the number of arrests, prosecutions, and convictions, but more important, in the Government's ability to get to the international kingpins -- wherever they are -- and to dismantle entire organizations by destroying their financial base through asset seizure and forfeiture. Our principal efforts now target the entire criminal conglomerate, including those who operate the traffic's infrastructure: those in the transportation industry who engage in the commerce and movement of this illicit cargo; the corrupt law enforcement officer who "merely" looks the other way; the business people and bankers who launder money; and the attorneys who aid and abet drug traffickers. As the many examples contained in this report illustrate, we seek to apply the full force of the law to reach everyone involved in these transnational cartels. No less important is the Federal law enforcement community's recognition of the importance of reducing the demand for drugs. Although we are continually engaged in struggles where the forces of law confront lawlessness and crime, we recognize that the real war will not be won in the cocaine jungles of South America where narco-terrorists prowl or on the inner-city street corners where the street gangs shoot it out. As I have often stated, the real war must be fought--and won--on the battlefield of values. Ultimately, the drug war will not be won by drug agents or by prosecutors in the courtroom. Although law enforcemen"t is part of the solution, we will only achieve victory when a winning battle is fought in the classroom, in the workplace, in houses of worship, in the community, and, most important, in the family. The Nation must reclaim more than its streets from the drug dealers, we must reclaim a value system that emphasizes, once The President August 3, 1989 Page 3 again, self-respect, self-reliance, and the integrity of our mind and spirit. That is why efforts to reduce the demand for drugs have become an increasing part of the work of the Federal law enforcement community. This renewed partnership with the American people to return to the day of law and order, when drug use is no longer tolerated, is cause for optimism. As we strive to rid the nation of the scourge of drugs, as you have so aptly described our goal, law enforcement officials will continue to pursue all of our options with unmatched diligence, and working with the spirit and drive that have made this country great, we will be no less unrelenting in attacking the demand for drugs. I pledge to you our full support in the implementation of you~ Administration's international ,drug co~trol strategy. We know it may 'be difficult, but we will exert every effort to see that it succeeds. Enclosure L ________ I am asking each of you to prepare a report, to be delivered to me, that details the "corporate structure," if you will, of the narcotics trafficking business in your districts. I want to know the hows and whys of drug trafficking. I want to know the ins and outs of the drug enterprise. I want a "who's who" of the drug world. Out of this we can compile a "Dun and Bradstreet" analysis of the business structure of drug trafficking in this country as a basis for analyzing how more ef­ fectively to combat drug importation and distribution. I ask that you analyze sales, accounting, banking, finances, communications -- everything you can identify out of past prosecutions and present investigations that makes up the complex and all too often invisible web of drug dealing in America. Work at it. Dig for it. Empanel the special investigative grand juries provided for under law if you have to. But find out once and for all how this deadly game is being played. Demystify it. Drag it out from under the rock where it lives and breeds, so that we can fully educate the American public as to the size and breadth of these illegal and insidious business operations; and so that they, in turn, will better understand and more enthusiastically support the difficult struggle in which we are engaged. Do that, furnish the information to me, and I promise you that no one will ever again accuse us of waging a "phony war" on drugs. Attorney General Dick Thornhurgh United States Attorneys Conference Charleston, South Carolina October 8, 1988 DRUG TRAFFICKING A REPORT TO THE PRESIDENT OF THE UNITED STATES Compiled by: The United States Attorneys and The Attorney General of the United States August 3, 1989 CONTENTS Page I. INTRODUCTION 1. II. THE ILLICIT USE OF DRUGS 2. A. Societal Costs 2. 1. Costs to the Taxpayer 3. 2. Corruption 4. 3. The Workplace 5. 4. The Environment 5. 5. Increased Crime 6. B. Principal Drugs of Abuse 7. 1. Cocaine 7. 2. Heroin 9. 3. Marijuana 11. 4. Other Dangerous Drugs 13. III. DRUG TRAFFICKING ORGANIZATIONS .16. A. Patterns of Organized Crime 16. B. Principal Drug Trafficking Organizations 17. 1. Colombian Drug Cartels 17. 2. La Cosa Nostra and the Sicilian Mafia 22. 3. Asian Organized Crime Groups 24. 4. Jamaican Posses 27. 5. Outlaw Motorcycle Gangs 30. 6. California Street Gangs 33. 7. Other Domestic Trafficking Organizations 35. 8. Trafficking by Other Foreign Nationals 38. C. Money Laundering 40. IV. THE FEDERAL RESPONSE 44. A. Overview 44. B. Investigative and Prosecutorial Activities 46. 1. Coordinated Efforts 46. 2. Financial Investigations and Asset Forfeiture 49. 3. Support Services 51. C. Legislative Initiatives 53. D. Demand Reducation 56. E. International Initiatives 58. I. INTRODUCTION This Administration is committed to ending the scourge of drugs that is ravaging this country. In support of that commitment, the U.S. Department of Justice has established as its highest law enforcement priorities the identification and elimination of criminal drug trafficking organizations and the forfeiture of their ill-gotten gains. As one of the fIrst steps in implementing action in support of this priority, in October 1988, Attorney General Dick Thornburgh asked the 93 U.S.