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DEA
Congressional Testimony [print
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April 5, 2006
ATTACHMENT
ACCOMPANYING THE STATEMENT OF
THE HONORABLE KAREN P. TANDY, ADMINISTRATOR
DRUG ENFORCEMENT ADMINISTRATION
“ DRUG THREATS AND ENFORCEMENT OPERATIONS”
April 2006
I. Drug Threats to the United States
A. Methamphetamine
Methamphetamine is the most widely abused and most frequently clandestinely
produced synthetic drug 1 in the United States. Methamphetamine appeals to
people across
all genders, ages, and socio-economic levels. Methamphetamine has a high rate
of addiction, a low rate of sustained recovery, and is cheap to manufacture.
It has become a problem of epidemic proportions in the United States, devastating
users, their families, and local communities. According to the 2004 National
Survey on Drug Use and Health (NSDUH), 583,000 persons 12 and older used
methamphetamine during the past 30 days (a 4 percent decrease from 2003) and
1.4 million have
used it in the past year, a 10 percent increase from 2003. The estimated number
of past year methamphetamine users is three times the number of estimated past
year heroin users.
By effectively targeting and arresting the main suppliers of bulk precursor
chemicals, DEA has successfully reduced the number of “super labs” 2
in the United States. As a consequence, operators of “super labs” have
shifted their production to Mexico. Current drug and lab seizure data suggest
that
80 percent of the methamphetamine consumed in the United States comes from
larger
labs, for the most part in Mexico, and that approximately 20 percent of the
methamphetamine consumed comes from the small, toxic laboratories (STLs) in
the United States.
STLs generally are unaffiliated with major drug trafficking organizations,
but nevertheless present enormous environmental challenges.
In recent years, the proliferation of STLs has been fueled by the ready availability
of pseudoephedrine, the key ingredient in methamphetamine and by the fact that
the manufacturing process is simple, inexpensive, and recipes can be found easily
on the Internet. In 1990, there were two states with 20 or more clandestine laboratory
seizures. In 1996, this number increased to 10 states. In 2004, there were over
40 states where 20 or more seizures of clandestine laboratories occurred. From
2002 through 2005, more than 55,000 STLs were discovered and seized.
1 The term ‘synthetic drugs’ refers to controlled substances such
as methamphetamine, MDMA “ecstasy” (and its analogues), GHB (and
its analogues), ketamine, and other substances, which are not of primarily
organic origin and are usually associated with clandestine manufacture.
2 “Super labs” are those labs that are capable of producing at
least 10 pounds of methamphetamine per cycle.
3 A visit to the emergency room is referred to as an episode, and every time
a drug is involved in an episode it is counted as a mention.
4 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. Detailed Emergency Department Tables from DAWN: 2003.
December 2004.
5 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. (2005). Overview of Findings from the 2004 National
Survey on Drug Use and Health.
6 Drug Availability Steering Committee, Drug Availability Estimates in the United
States, December 2002.
7 Executive Office of the President, Office of National Drug Control Policy.
What Americans Spend on Illegal Drugs 1988-1998. December 2000.
8 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. (2005). Overview of Findings from the 2004 National
Survey on Drug Use and Health.
9 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. (2002). National Household Survey on Drug Abuse: Vol
1. Summary of National Findings.
10 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. Detailed Emergency Department Tables from DAWN: 2003.
December 2004.
11 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. (2005). Overview of Findings from the 2004 National
Survey on Drug Use and Health.
12 Ibid.
13 U.S. Department of Health and Human Services, Substance Abuse and Mental Health
Services Administration. Detailed Emergency Department Tables from DAWN: 2003.
December 2004.
14 U.S. Department of Justice, National Drug Intelligence Center. (2006). 2006
National Drug Threat Assessment.
15 Ibid.
16 U.S. Department of Justice, National Drug Intelligence Center. (2006). 2006
National Drug Threat Assessment.
17 U.S. Department of Justice, National Drug Intelligence Center. (2006). 2006
National Drug Threat Assessment.
According to the Clandestine Laboratory Seizure System database located
at the DEA’s El Paso Intelligence Center (EPIC), 11,746 labs, dumpsites,
and chemicals, glass, and equipment were seized in the United States in CY
2005. Of those seized,
5,308 labs were capable of producing only up to one pound of methamphetamine
per cycle. In FY 2005, DEA domestic seizures of methamphetamine totaled 3.1
metric tons, which is the equivalent to approximately 367 million dosage units.
FY 2005
seizures increased by 24 percent from FY 2004, when 2.5 metric tons were seized.
The most promising means of eliminating STLs is to choke off the sources
for ephedrine and pseudoephedrine. DEA has removed a number of distributors
of
grey market drug products (those that can be purchased at truck stops, party/liquor
stores, etc.) from the marketplace. Following DEA’s success with removing
grey market distributors, STLs have become heavily reliant on obtaining precursor
chemicals from cold and asthma drug products (usually packaged in blister packs)
from traditional retail outlets, such as chain drug stores. Based on clandestine
lab seizure statistics, those states restricting the availability of methamphetamine
precursor chemicals, like pseudoephedrine, have seen a dramatic decrease in
the number of small toxic labs. With the enactment of federal and state legislation
limiting the sale of products containing pseudoephedrine and ephedrine, further
reduction in the number of STLs is anticipated.
Once a STL has been identified, it must be dismantled. DEA assists state
and local law enforcement by providing hazardous waste contractor clean-up
services
administered through Community Oriented Policing Services (COPS) grant funding.
In FY 2005, DEA administered 8,678 state and local clandestine clean ups.
This is a decrease from FY 2004 when 9,474 clean ups were administered. In
addition,
DEA has trained nearly 12,000 federal, state, and local law enforcement personnel
since 1998 to conduct investigations and dismantle seized methamphetamine
labs to protect the public from methamphetamine lab toxic waste.
At the end of the first quarter of FY 2006, there were 298 active DEA Priority
Target Organization (PTO) investigations with methamphetamine as the primary
drug type. Seven (7) of the 44 organizations (16 percent) on the FY 2006
Consolidated Priority Organization Target (CPOT) list are engaged in methamphetamine
trafficking.
At the end of the first quarter of FY 2006, there were 157 active PTO investigations
linked to those 7 CPOTs. Since the inception of the PTO program, DEA has
disrupted or dismantled 427 methamphetamine PTOs.
Operational Highlight: Operations Cold Remedy and Aztec Flu
From March 2003 to March 2005, as part of DEA’s Operations Cold Remedy
and Aztec Flu, more than five metric tons of 60 milligram tablets of pseudoephedrine
were seized in the United States, Mexico, and Panama -- which could have yielded
an excess of 3 metric tons of methamphetamine. The seizures were conducted by
DEA with Mexico’s Organized Crime Prosecutor’s Office and
Hong Kong law enforcement authorities. Operations Cold Remedy and Aztec
Flu are
investigations
run under the auspices of Project Prism, an international initiative
aimed at assisting governments in developing and implementing cooperating
procedures
more
effectively control and monitor trade in amphetamine-type stimulant
precursors to prevent their diversion. Participants of Project Prism
include 95 countries
and 5 international organizations.
Operational Highlight: MET Case Against Street Gang “Satan’s
Disciples”
On March 7, 2006, the DEA Dallas Field Division MET concluded a nine-month
deployment and OCDETF/PTO investigation that resulted in the dismemberment
of seven methamphetamine
trafficking organization and two crack cocaine organizations. The investigation
targeted Rocky Salazar who headed a street gang named Satan’s Disciples,
responsible for distributing methamphetamine in the Gainesville, Texas area.
The Satan’s Disciples also distributed narcotics and laundered
money in three separate casinos located on Indian Reservations in nearby
Oklahoma.
The
investigation culminated with the arrest of 93 individuals (81 state
and 12 federal), including Priority Target Salazar, and the seizure
of 0.6 kilograms
of crack
cocaine, 0.2 kilograms of powder cocaine, 2.5 kilograms of marijuana,
8.8 kilograms of methamphetamine, 0.6 kilograms of GHB, 65 firearms,
$167,000 in U.S. currency,
$70,000 in real property, and four vehicles. DEA conducted this enforcement
operation together with ATF, BIA, the Chickasaw Indian Nation, and
state and local officers
from Texas and Oklahoma.
B. Marijuana
Marijuana continues to be a significant threat because today’s
potent marijuana causes more teens to be dependent on it. This is supported
by the
following data:
(1) More teens seek treatment for marijuana dependency than for all other
drugs combined including alcohol. (2) Marijuana was involved in 79,663
emergency
department visits 3 in CY 2003, second only to cocaine among
drug-related visits4 (3)The
2004 NSDUH found that marijuana was the most commonly used illicit drug
with 14.6 million users (6.1 percent of the population 12 and older)
during the
past month in CY 2004 - the same as in CY 2003.5 (4) Past year use of
marijuana remained
unchanged statistically between CY 2003 and CY 2004 at 10.6 percent.
Marijuana trafficking is prevalent across the nation, with both domestic
and foreign sources of supply. The most recent supply availability estimates
indicate
that between 10,000 and 24,000 pure metric tons of marijuana are available
in the United States6 and that Americans spend more than $10.4
billion every year
on marijuana.7 Since the demand for marijuana far exceeds that for any
other illegal drug and the profit potential is so high, some cocaine
and heroin
drug trafficking organizations traffic marijuana to help finance their
other drug
operations.
Mexican drug trafficking organizations dominate the transportation and
wholesale distribution of the majority of foreign-based marijuana available
in the
United States and cultivate marijuana on U.S. public lands throughout
California. High grade marijuana from Canada, commonly referred to as “BC Bud,” also
is available in every region of the United States.
At the end of the first quarter of FY 2006, there were 146 active PTO
investigations with marijuana as the primary drug type. Twelve (12) of
the 44 organizations
on the FY 2006 CPOT list (27 percent) are engaged in marijuana trafficking.
At the end of the first quarter of FY 2006, there were 385 active DEA
PTO investigations
linked to these 12 CPOTs. Since the inception of the PTO program, DEA
has disrupted or dismantled 208 marijuana PTOs.
Operational Highlight: Operation Falling Star
As of the end of 2005, this Organized Crime Drug Enforcement Task
Force (OCDETF)/SOD coordinated operation targeting a Detroit and
Phoenix-based
marijuana drug
trafficking organization (DTO), resulted in 63 arrests, and the seizure
of $13.7 million
in cash, 16.4 metric tons of marijuana, 305 kilograms of cocaine, 14
properties, 22 vehicles, and 42 weapons, leading to the dismantlement
of the drug trafficking
organization. The Detroit target, Quasand Lewis, has been targeted
for approximately ten years by state and local law enforcement agencies
for
his suspected involvement
in several homicides and extensive drug trafficking and witness intimidation.
The focal point of the investigation, Giovanni Ruanova, coordinated
multi-million dollar currency transportation routes and pick-ups
from Detroit.
C. Non-medical use of prescription drugs
Non-medical use of addictive prescription drugs has been increasing
throughout the United States at alarming rates. In CY 2004, an estimated
6.0 million8
Americans age 12 and older reported past month use of prescription
drugs for non-medical
purposes compared to 3.8 million in CY 2000 9 - a 58 percent increase
in 4 years. Nationally, the misuse of prescription drugs was second
only to
marijuana
in
CY 2004.
Individual users can easily acquire prescription drugs through a
variety of means, generally dependent on type of drug. DEA and other
data sources
reveal
that OxyContin ® and
other Schedule II drugs are most commonly obtained illegally through “doctor
shopping” or are sold illegally by registrants (e.g., doctors/pharmacists).
On the other hand, Schedule III and Schedule IV drugs (e.g., anti-anxiety
medications, hydrocodone, and anabolic steroids) are often purchased
through the Internet.
Many of these e-pharmacies are foreign-based and expose the purchaser
to potentially counterfeit, contaminated, or adulterated products.
Operational Highlight: An Advanced Pain Management Case
In April 2005, DEA culminated a five year OCDETF and Priority Target
investigation that resulted in the dismantlement of a major
prescription drug trafficking
organization and the seizure of $1.6 million in cash, $4.7
million in financial and approximately
$4.8 million in real assets. Five individuals, including three
physicians, were arrested and charged with the distribution of
pharmaceutical controlled substances,
distribution of drugs to a minor, conspiracy, and money laundering.
The physicians prescribed a cocktail of hydrocodone, Xanax
and Soma
to approximately
100-300
patients per day under the guise of “pain management”.
To date, this investigation has resulted in Immediate Suspensions
of DEA Registrations
of the
doctors and four pharmacies were also issued.
DEA, in collaboration with its state and local law enforcement
counterparts, investigates registrants and non-registrants who
intentionally divert
prescription drugs. DEA has made pharmaceutical investigations
a priority and continues
to focus its drug enforcement efforts toward the most important
members of the drug
supply chain. In FY 2005, DEA opened 1,672 investigations focused
on the diversion of pharmaceutical controlled substances by registrants
and non-registrants,
an approximate increase of 11 percent over FY 2004 (1,508). DEA’s FY
2005 Priority Target pharmaceutical investigations of key drug supply organizations
(59) represents a dramatic increase (168 percent) over FY 2004 (22).
Combating the diversion of OxyContin® remains a priority within DEA. Of the
1,668 open investigations in FY 2005, 117 were open OxyContin® investigations
involving 48 doctors. Of those 117 OxyContin® investigations, 25 were Priority
Target investigations.
The illicit sale of controlled pharmaceutical substances, including
narcotics, anti-anxiety medications, steroids, and amphetamines,
is a serious global
problem and the Internet has become one of the most popular sources
for these products.
DEA targets its investigations on domestic Internet pharmacies
using data from available data bases (such as the Automated Reporting
of
Completed Orders System—ARCOS)
to determine which retail pharmacies are most likely involved in distribution
of large quantities of controlled substances over the Internet. In FY 2005,
11.2 percent of investigative work hours dedicated to open diversion cases
were Internet
cases. This is an increase of 30 percent from FY 2004 when Internet cases represented
8.6 percent of the investigative work hours dedicated to open diversion cases.
In FY 2005, as a result of online pharmacy investigations, DEA seized over
$32 million in financial and property assets. This is a 184 percent increase
from
FY 2004 when asset seizures totaled $11 million.
Operational Highlight: Operation Cyber Chase
In April 2005, a one-year, multi-jurisdictional OCDETF investigation
(Operation Cyber Chase) was concluded with the dismantlement
of the Bansal drug trafficking
organization and the arrest of 20 individuals in New York,
Philadelphia, India, Costa Rica, Austria, and Hungary. Those arrested
were
distributing drugs worldwide
using rogue Internet pharmacies to dispense controlled
substances directly to customers without a medical evaluation by a
physician.
The Bansal
organization used over 200 websites to distribute 2.5 million
dosage units of Schedule
II through IV pharmaceutical controlled substances per
month. Electronic mail
communications
among the co-conspirators included: “It’s not easy to get rich. My
goal is towards the upper echelon of economic independence. All things considered,
it should only take about 800 million. That’s um, 3000 packs of valium
sold a day for 5 years. Well, that’s actually about 921 mill, but I’m
not sure there’ll be a few costs in there somewhere.” As of September
30, 2005, Operation Cyber Chase has resulted in 26 arrests, the seizure of 5.8
million dosage units of Schedule II – IV controlled
substances, 105 kilograms of Ketamine, and $8.6 million.
D. Cocaine
Cocaine remains a major illegal drug of concern throughout the
United States based upon abuse indicators, violence associated
with the
trade, and trafficking
volume. After marijuana and prescription drugs, cocaine continues
to be the most widely used illicit drug among all age categories.
The
2004 NSDUH
found
that
2 million people used cocaine within the past 30 days and that
over 5.6 million people used it within the past year. According
to the
2003 DAWN
report, cocaine
is the most frequently reported illegal drug in hospital emergency
department visits, accounting for 1 in 5 (20 percent) drug
related emergency room
visits in CY 2003.10
Although Columbia is the principal supplier of cocaine to the
United States, most of the wholesale cocaine distribution in
the United
States is controlled
by Mexican drug trafficking organizations and criminal enterprises.
Even in areas dominated by Colombian and Dominican drug trafficking
organizations,
such as
the Northeast and Caribbean regions, the influence of Mexican
drug trafficking organizations is increasing.
At the end of the first quarter of FY 2006, there were 1,028
active DEA PTO investigations with cocaine as the primary drug
type. Thirty-nine
(39) of
the 44 organizations
on the FY 2006 CPOT list (89 percent) are engaged in cocaine
trafficking. At the end of the first quarter of FY 2006, there
were 514 active
PTO investigations linked to these 39 CPOTs. Since the inception
of the
PTO
program, DEA has
disrupted
or dismantled 1,208 cocaine PTOs.
Operational Highlight: Operations Firewall and Panama Express
DEA’s multi-agency cocaine interdiction programs – known as Operation
Firewall and Operation Panama Express – combine
investigative and intelligence resources to interdict
and disrupt the flow of cocaine from the northern coast
of Colombia to the United States. Since the July 2003
commencement of Operation
Firewall, 29.2 metric tons of cocaine have been directly
seized. In addition, Operation Firewall has provided
assistance in Operation Panama Express seizures
of 33.2 metric tons of cocaine, and in other foreign
countries with the seizure of 25.7 metric tons of cocaine.
Since the February 2000 implementation of Operation
Panama Express to December 31, 2005, 356 metric tons
of cocaine have been seized, 109.2 metric tons of cocaine
have been scuttled, and 1,107 individuals arrested.
As of December 31, 2005, these combined operations have
resulted in total seizures of 410.9 metric tons of cocaine.
E. Heroin
The overall demand for heroin in the United States is lower
than for other major drugs of abuse such as cocaine, marijuana,
methamphetamine,
and MDMA.11
However,
one cause for concern is the recent increase in heroin
use. According to the 2004 NSDUH, 166,000 people aged 12 and older
(0.1 percent)
reported
using heroin
during the past 30 days in CY 2003 compared to 119,000
(0.1
percent) in
CY 2003.12 Heroin remains readily available in major metropolitan
areas and
is the third
most frequently mentioned illegal drug reported to DAWN
by participating emergency departments after cocaine and marijuana,
accounting
for 47,604 mentions in CY
2003.13
Most of the heroin entering the United States is produced
in South America and Mexico. Although heroin production
in these
areas has
decreased in
recent years,
the production capacity remains sufficient to meet U.S.
demand for the drug.14 In 2004, Afghanistan produced more
than 90
percent of
the worldwide
heroin
produced.15 However, Afghanistan is not currently a major
heroin supplier to the United States;
only about 8 percent of the U.S. supply comes from that
country.
At the end of the first quarter of FY 2006, there were
240 active DEA PTO investigations with heroin as the primary
drug type.
Fourteen (14)
of the
44 organizations on
the FY 2006 CPOT list (32 percent) are engaged in heroin
trafficking. At the end of the first quarter of FY 2006,
there were 514
active PTO investigations
linked to these 14 CPOTs. Since the inception of the PTO
program, DEA has disrupted
or dismantled 357 heroin PTOs.
Operational Highlight: Operation Containment and FAST
Through Operation Containment, DEA is working with a coalition
of 19 countries from Central Asia, the Caucasus,
Europe, and Russia, to reduce
the flow
of Afghan heroin into world markets, prevent Afghanistan
from becoming a major
heroin supplier
to the United States, and disrupt drug related terrorist
activities that could hamper the long term stabilization
of the Afghanistan
government. In FY 2005,
Operation Containment resulted in the seizure of
11.5 metric tons of heroin, 1.3 metric tons of morphine base, 43.9
metric tons of
opium
gum,
14.2 metric
tons of precursor chemicals, and 248 clandestine
opium, morphine, and heroin conversion laboratories. By comparison,
just three
years prior,
.47 metric
tons of heroin was seized, representing a 2,300 percent
increase in FY 2005. Operation
Containment also resulted in the initiation of 146
investigations
and led to the disruption of two CPOTs, including
the Haji Bashir Noorzai
and Haji
Baz
Mohammad organizations in FY 2005. DEA’s Foreign-deployed Advisory Support Team
(FAST) Program augments Operation Containment. Since being deployed in April
2005, the FAST program has trained over 100 Afghan officers who work bi-laterally
with DEA’s FAST teams. One successful FAST
operation occurred on June 18, 2005, when the DEA
Kabul Country Office, FAST, United Kingdom forces,
and
the
U.S. trained Afghan officers raided and destroyed
four fully operational clandestine heroin laboratories.
One of the four opium-to-morphine base conversion
laboratories
destroyed was one of the largest seized in Afghanistan.
Approximately 4.4 metric tons of opium, hundreds
of gallons of chemicals, four opium presses, six
opium
vats, and 500 kilograms of soda ash were destroyed.
F. Transit Zones
The Southwest Border area is the principal arrival zone
for most illicit drugs smuggled into the United States.
From
that area,
the smuggled
drugs are distributed
throughout the country.
Most cocaine is transported from South America, particularly
Colombia, through the Mexico–Central America Corridor via the Eastern Pacific transit zone
(50 percent) and the Western Caribbean zone (40 percent). Most of the cocaine
transiting these two areas is ultimately smuggled into the country via the
Southwest Border. The remaining 10 percent of cocaine transported from South
America mostly
transits the Caribbean zones to Florida and the Gulf Coast.16
According to the 2006 National Drug Threat Assessment,
methamphetamine seizures increased from 1.12 metric
tons in CY 2002, to 1.73
metric tons in CY 2003,
to 1.98 metric tons in CY 2004. Most of the foreign-produced
marijuana available in the United States is smuggled
into the country from
Mexico via the Southwest
Border by Mexican drug trafficking organizations and
criminal groups, as evidenced
by CY 2004 seizures of 1,103 metric tons on the Southwest
Border versus 9.2 metric tons on the Northern Border.
In CY 2004, seizures for Southwest Border points of
entry included 22.4 metric tons of cocaine, 388 kilograms
of
heroin, 1,070
metric tons of
marijuana, and 2.3 metric tons of methamphetamine.
By comparison, seizures in the
Florida/Caribbean
arrival zone for the same time period included 10.5
metric tons of cocaine, 481
kilograms of heroin, 4.9 metric tons of marijuana and
no methamphetamine.
Operational Highlight: Discovery of Narcotics Smuggling
Tunnel
Acting on intelligence from a Confidential Source,
in January 2006, a joint investigation between DEA,
Immigration
and
Customs Enforcement,
United
States Border Patrol,
and the Mexican Policia Federal Preventia culminated
in the discovery of a narcotics smuggling tunnel.
The tunnel
spanned
the United
States/Mexican border just east
of the Otay Mesa, California Port of Entry and resulted
in the seizure of approximately two tons of marijuana.
The discovery
of the tunnel
followed
an extensive investigation
resulting from DEA and ICE confidential source information.
The
tunnel, approximately
86 feet deep and nearly three-quarters of a mile
long, originated inside a small warehouse in Otay
Mesa, Mexico,
and exited
inside a vacant
warehouse in San Diego,
California.
II. Financial Investigations
Drug trafficking organizations are motivated by one
thing – money. According
to the 2006 National Drug Threat Assessment, between $13.6 billion and $48.4
billion is generated annually by wholesale-level drug distribution.17 To truly
dismantle drug enterprises, we must attack the drug trafficking organizations’ ability
to collect proceeds from the drug trade.
DEA has reenergized and refocused its attack on
the financial infrastructure of drug cartels. DEA’s Office of Financial Operations and specialized Money
Laundering Groups in DEA’s 21 domestic field divisions principally target
the drug money laundering systems and the drug profits that flow back to the
sources of drug supply. In FY 2005, DEA established a five-year plan with annual
milestones through FY 2009. The plan calls for DEA to increase seizures until
we seize drug profits at a level each year that will actually destroy drug networks
rather than being viewed by traffickers only as an expected cost of doing business.
To do this, DEA must seize $3 billion from drug trafficking organizations each
year. In the first year under this plan, DEA denied drug traffickers $1.9 billion
in revenue in FY 2005 – including $1.4 billion in seized assets and $477
million in drug seizures – exceeding DEA’s first year goal of $1
billion in seizures by 90 percent.
The smuggling of large sums of cash across our
borders continues to be the primary method used
to expatriate
drug proceeds
from the United
States
to
the source
countries. To address this increasing threat, the
DEA has initiated a bulk currency program to coordinate
all U.S.
highway interdiction
money
seizures.
Bulk currency
cash seizures in FY 2005 totaled $407 million,
a 28
percent increase over the $317 million seized in
FY 2004.
Operational Highlight: Arrest of Martin Tremblay
On January 20, 2006, Martin Tremblay, a Canadian
national and President and Managing Director
of the Bahamas-based
investment
firm “Dominion Investments, LTD” was
arrested by the DEA and other federal and state law enforcement agencies. Tremblay
was indicted for conspiracy to launder narcotics proceeds in a long-term money
laundering scheme from approximately 1998 through December 2005. Tremblay conspired
to launder $1 billion in illegal drug proceeds for “Dominion Investment” clients
in exchange for a substantial commission. Dominion Investment was used by Tremblay
to create shell companies and fictitious entities to launder the drug proceeds
he received to offshore accounts in the United States, Canada, Switzerland, and
elsewhere around the world. Tremblay’s
activities as a money launderer were first
identified in an international DEA drug investigation
targeting
subjects distributing GHB over the Internet
(Operations Webslinger and Black Goblin).
Other federal and state law enforcement agencies
involved in this case include
the Internal Revenue Service, Criminal Investigations
Division (IRS/CID) the New York State Police,
and the Organized Crime Drug Enforcement
Strike Force
in New York, New York.
Operational Highlight: Operations Dirty Dinero
/Common Denominator
On March 2, 2006, in a joint action between
the Colombian National Police and the Drug
Enforcement
Administration,
Financial CPOT
Ricardo Mauricio
BERNAL-Palacios,
his brother Juan BERNAL-Palacios and Tier
1 Money Broker Camillo ORTIZ-Echeverri were
arrested
in Bogotá, Colombia. These arrests
were based on provisional arrest warrants
filed against the three in relation to a
February 2006 indictment
in the Southern District of Florida charging
48 counts of money laundering, 18 USC 1956
(h) and one count of conspiracy to distribute
cocaine, 21 USC 846.
III. Gangs
Gangs have become an increasing threat to our
nation’s security and the
safety of our communities. Seventy-five percent of the United States Attorneys
report that parts of their districts currently have a moderate or significant
gang problem. Gangs commonly use drug trafficking as a means to finance their
criminal activities. Furthermore, many have evolved from turf-oriented entities
to profit-driven, organized criminal enterprises whose activities include not
only retail drug distribution but also other aspects of the trade, including
smuggling, transportation and wholesale distribution.
Criminal street gangs, outlaw motorcycle gangs,
and prison gangs are the primary retail distributors
of illegal
drugs on the streets
of
the United
States and
the threat of these gangs is magnified by the
high level of violence associated with their
attempts
to control
and expand
drug distribution
operations.
Gangs primarily transport and distribute cocaine,
heroin, marijuana, and methamphetamine.
Authorities throughout the country report that
gangs
are responsible for most of the serious violent
crime in the
major cities of
the United States.
DEA is committed to combating the gang problem
within the United States. As of February 7,
2006, approximately
12
percent (239)
of DEA’s total active
Priority Target investigations target gangs. In addition, DEA’s Mobile
Enforcement Teams (METs) target violent drug trafficking organizations in areas
where state, local, and tribal law enforcement is challenged by limited resources
to counter the threat. Often, these MET deployments target violent gangs involved
in drug trafficking activity, such as the Hell’s Angels, Latin Kings,
Bloods, Crips, Mexican Mafia, and Gangster Disciples. In FY 2004, approximately
27 percent
(11 of 40) of MET deployments targeted gangs. Gang related MET deployments
increased to 38 percent in FY 2005, when 15 of 39 MET deployments initiated
targeted gangs.
Through the second quarter of FY 2006, 5 of 14 deployments (35 percent) targeted
gangs.
DEA also recognizes the value of an integrated,
collaborative and comprehensive approach to
multi-faceted gang
organizations and
their operations.
DEA participates in a number of anti-gang initiatives
with other law enforcement
components,
including Violent Crime Impact Teams, Project
Safe Neighborhoods, Weed and Seed Program,
Safe Streets and Safe Trails Task Forces and
the Attorney General’s Anti-Gang
Coordination Committee.
Operational Highlight: Operation Motor City
Mafia
Operation Motor City Mafia was a Special
Operations Division-supported, OCDETF and
PTO investigation
of the Black Mafia Family
(BMF). DEA and the Internal
Revenue Service identified the BMF as a major
cocaine and crack cocaine distribution organization
with
cells in major
metropolitan
cities
including Detroit, Atlanta,
Los Angeles, Miami, St. Louis, Orlando, and
Louisville. The BMF uses the rap
music industry to distribute hundreds of
kilograms of cocaine and to launder millions
of dollars
in drug proceeds.
The
BMF has used
intimidation,
violence,
and murder to maintain their strong presence
among their urban drug trafficking organizations.
As
of January 27,
2006, Operation
Motor
City Mafia resulted
in the arrest of 53 defendants and the seizure
of 385 kilograms of cocaine, 1.2
metric tons of marijuana, $4.6 million, and
other assets valued at over $16 million.
IV. State and Local Assistance
DEA provides direct assistance to state and
local law enforcement agencies through its
State and
Local Law
Enforcement Officer
Training program,
State and Local
Task Force program, and Mobile Enforcement
Team (MET) program. In addition, DEA provides
clandestine
laboratory
clean
up assistance to state and
local law enforcement
agencies.
State and Local Training: DEA trained 22
percent more state and local officers
in FY 2005 (41,853)
than FY
2004 (34,183),
including
training
in responding
to clandestine laboratories, drug
diversion, and law enforcement intelligence.
State and Local Task Forces: DEA’s partnerships with federal, state, local,
and international law enforcement entities serve as force multipliers in our
efforts to reduce the availability of illicit drugs in America. As of the end
of first quarter FY 2006, DEA’s
State and Local Task Forces numbered
214 and included over 2,500 authorized
Task Force Officers with more than
1,100 authorized
DEA Special Agents.
Mobile Enforcement Teams: In April
1995, DEA created the MET Program
to assist state,
local,
and tribal
law enforcement
in the disruption
or dismantlement
of violent drug trafficking organizations
and gangs. Since March 2005, METs
have
prioritized deployments on methamphetamine,
targeting repeat meth offenders
and clandestine laboratory
operators in
areas of the
United States
that have a limited
DEA presence. Since the re-direction
of MET, 44 percent (20 out of 45)
of new MET deployments
opened
in FY
2005 were
methamphetamine
deployments. This
is nearly
double the methamphetamine deployments
by METs from FY 2003 to
FY
2004. During this period, an average
of 24 percent of new MET deployments
were
focused
on methamphetamine.
Hazardous Waste Program: Established
in 1990 to address environmental
concerns from the
seizure of clandestine
drug laboratories,
DEA’s hazardous waste
program promotes the safety of law
enforcement personnel and the public
by using highly qualified companies
with specialized training and equipment
to
perform
the removal of the methamphetamine-related
wastes at seized laboratories. In FY
2005, DEA administered 8,678 state
and local clandestine clean ups. In
addition,
DEA has trained nearly 12,000 federal,
state, and local law enforcement personnel
since 1998 to conduct investigations
and dismantle seized methamphetamine
labs to protect the public from methamphetamine
lab toxic waste. To accelerate the
clean up process and reduce costs borne
by state and local governments associated
with seized sites, DEA has developed
a hazardous waste container program
that will allow for the central collection
of waste products, reducing the time
and expense of lab clean ups. A pilot
program in Kentucky produced savings
of $800,000
in FY 2005 and approximately $500,000
in FY 2004.
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