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Drug Situation: The state of New Jersey is situated between the major industrial markets of New York and Pennsylvania and has been referred to as the “crossroads of the east.” It is also a gateway state, with major interstate highways, roadways, airports, seaports, and other infrastructures capable of accommodating voluminous amounts of passenger and cargo traffic not only from both the eastern and western parts of the United States, but from around the globe. New Jersey is an ideal strategic corridor as well as a vulnerable corridor for transportation of drug contraband and illicit currency. Beginning in April 2006, an increase in fatal and non-fatal drug overdoses was noticed by first responders and medical personnel in New Jersey. This increase has been linked to fentanyl. Fentanyl is commonly used for anesthesia and pain relief in medical settings; however, the current overdoses are associated with non-pharmaceutical fentanyl, manufactured in illegal labs. There have been at least 133 deaths related to the use of non-pharmaceutical fentanyl in New Jersey since mid-April. The New Jersey Division has initiated an Intelligence Gathering Initiative, “OPERATION UNDERTAKER.” Operation UNDERTAKER seeks to identify areas throughout the State of New Jersey where the precursor chemicals, necessary to manufacture fentanyl, are being delivered, and to also provide a general awareness to the public of the dangers of fentanyl. The New Jersey Division has made numerous contacts with other State and Federal Law Enforcement Agencies, Medical Examiner Offices, Colleges, and Pharmaceutical Companies in order to “Educate, Protect, and Respond” to the fentanyl situation, and monitor those precursor chemicals commonly used with fentanyl in the illicit market.

Cocaine/Crack: Cocaine remains the most popular drug in New Jersey and is the drug of choice for many abusers within the state. Crack remains readily available throughout the state and remains the drug of choice in many lower income communities.

New Jersey continues to be a major artery for international cocaine trafficking organizations. Cocaine continues to arrive into New Jersey directly from South American ports as well as the Southwest Border via commercial and private vehicles. Seizures at Newark International Airport confirm San Juan, Puerto Rico, as an entry point for shipments of cocaine into the United States. In some cases, the cocaine is transported to Florida before delivery to the final destination. Colombian and Dominican trafficking organizations are the primary cocaine suppliers in New Jersey at the wholesale level. At the retail level, African Americans and Dominican organizations prevail, but distribution is also undertaken by other ethnic groups and street gangs. Mexican organizations are seen in the transportation of cocaine. Powdered cocaine and crack are normally packaged in small baggies or plastic vials and sold in open-air markets in the state. Over the last year, intelligence sources have indicated the price of powder cocaine was increasing. Several factors have been attributed to this increase either as a conglomerate or as individual catalysts. The numerous large scale seizures by law enforcement and the ever increasing security at the United States borders could have significantly affected the amount of cocaine available in New Jersey thus increasing the cost. A shift in focus by the South American cocaine traffickers from the United States market to the European markets might have increased the cost of cocaine destined for New Jersey because of the increased risk vs. the risk of exporting to Europe. In addition, several intelligence sources indicate that the appearance of a shortage in cocaine is a business scheme by the New Jersey based sources of supply to drive up prices/profits. Any one of these alone, or in combination, can be contributing factors to the increase in price.

This wholesale price increase has affected additional aspects of the cocaine trade, most significantly the quality. The increase in price per kilogram has forced mid-level sources of supply to further cut or dilute the cocaine to increase saleable volume per kilogram of pure cocaine, two kilograms of diluent to one kilogram of cocaine. The decrease in purity has been noticed by street level distributors and has caused them to return bad cocaine and find another supplier, thus paying more for better quality or risk not having enough cocaine for daily street sales. In some instances, the low quality cocaine is being disposed of by mixing it with high quality cocaine to make crack cocaine.

Heroin: Heroin is the most prevalent drug of abuse in the New Jersey area. Data provided by the State of New Jersey Department of Human Services – Division on Addiction Services disclosed that heroin is used by 18-25 year olds in New Jersey at more than twice the national average. Heroin accounted for more than 22,751 treatment admissions in 2006. This was 41% of all treatment admissions, with a three percent decrease from 2005. 

Heroin’s high purity (among the highest in the nation as evidenced by the Domestic Monitor Program analyses) and low price has attracted numerous new users over the last few years, especially among adolescents in suburban areas. Although there has been a steady decrease in purity levels since 2003, heroin purity levels in the Newark area continue to be among the highest in the nation.

In April 2006, an increase in fatal and non-fatal drug overdoses was noticed by first responders and medical personnel in New Jersey. This increase has been linked to fentanyl. Fentanyl is commonly used for anesthesia and pain relief in medical settings; however, the current overdoses are associated with non-pharmaceutical fentanyl, manufactured in illegal labs. There have been at least 133 deaths related to the use of non-pharmaceutical fentanyl in New Jersey since mid-April. Although the majority of the overdoses were in the southern part of the state, some reached as far north as Morris County.

The New Jersey Division initiated an Intelligence Gathering Initiative, “Operation Undertaker.” Operation Undertaker sought to identify areas throughout the State of New Jersey where the precursor chemicals, necessary to manufacture fentanyl, are being delivered, and to also provide a general awareness to the public of the dangers of fentanyl. The New Jersey Division has made numerous contacts with other State and Federal Law Enforcement Agencies, Medical Examiner Offices, Colleges, and Pharmaceutical Companies in order to “Educate, Protect, and Respond” to the fentanyl situation, and monitor those precursor chemicals commonly used with fentanyl in the illicit market. Some areas, such as Morris County, have seen a rise in overdoses and overdose deaths. 

Since the inception of Operation Undertaker, the trend of fentanyl-laced heroin has taken a downturn. 

Heroin routinely arrives in the New Jersey metropolitan area primarily from South America, with transshipment from Mexico, Aruba, Curacao, Puerto Rico and countries in Central America. Heroin is routinely packaged in glassine envelopes with a brand name stamped on it. Ten glassine envelopes are referred to as a “bundle” and 50 glassines are a “brick.” Distribution points primarily remain open-air markets or street corners in lower income areas of urban cities such as Newark, Paterson, Camden, Jersey City, and Elizabeth. Southeast Asian and Southwest Asian heroin is encountered on a very limited basis. Some Nigerians or other West African drug organizations have been known to smuggle heroin from Europe and West Africa through Newark Liberty International Airport.

Air and land transportation, both personal and commercial, are the principal means used to smuggle heroin into the state. The majority of the heroin is smuggled in from Colombia via couriers arriving aboard various airlines. New information reveals that heroin traffickers are utilizing multiple couriers on flights with multiple connections. With this “relay” style method, couriers hand off packages to individuals waiting at the next connection point.

Methamphetamine: Methamphetamine is the most available and widely used clandestinely manufactured drug in the Southern New Jersey area. Methamphetamine traffickers are primarily of Mexican descent, with direct connections to violators in the western United States and Mexico. Methamphetamine availability has increased in the southern part of the state, allegedly due to the influx of Mexican suppliers.

Traditionally, methamphetamine production has been associated with Outlaw Motorcycle Gangs, independent chemists, and Traditional Organized Crime. Currently, crystal methamphetamine use and distribution in New Jersey appears to be closely associated with members of the Filipino community. Filipino traffickers are importing large amounts of methamphetamine from Mexico and the Philippines. The methamphetamine is converted to “ice” in the Los Angeles area and then transported to the New York/New Jersey area via motor vehicle. The ice is also shipped through various mail and parcel services. Due to successful enforcement actions, the ice is now sent to states off the usual trafficking routes and then transported by car to the New Jersey area.

• In March 2007, DEA New Jersey seized 75 pounds of “ice” that had originated in Mexico and was being transported to New Jersey through Rhode Island. This is the largest seizure of methamphetamine in New Jersey’s history.

Marijuana/Hashish: Marijuana is the most readily available illicit drug in New Jersey. Marijuana is transported to the New Jersey area via automobiles, tractor- trailers, vessels, US Postal Service, overnight services, parcel post, and commercial air from Southwest Border States.

The majority of the marijuana encountered in the state is of Mexican origin. Marijuana from Canada and Jamaica has also been encountered, on a lesser scale. Additionally, marijuana is produced locally at indoor and outdoor grows.

Various smuggling techniques have been utilized by organizations in an attempt to thwart law enforcement detection. Among the techniques are: co-mingled with legitimate produce: wrapping it in cellophane and placing it within luggage; placing it in a plastic bin surrounded by Styrofoam pellets and sealed with caulk, shipping inside a hollowed out computer, hidden inside stereo speakers, as well as packaging it in cardboard boxes with fabric softener sheets on top of the marijuana. One investigation in Morris County revealed an individual who was selling marijuana over the Internet. 

Most of the marijuana seizures in the state have occurred at the Newark Liberty International Airport, where passengers from Southwest Border states attempt to smuggle marijuana. Numerous seizures have also occurred through the division’s Small Parcel Interdiction Program. Bulk packages, normally weighing between 10 – 50 pounds each, arrive daily from various Southwest Border states are seized. No single ethnic group controls the wholesale distribution of marijuana within the state. Retail dealers are usually representative of the location where the marijuana is being sold.

Indoor marijuana grows are usually encountered in the southern, rural areas of the state, where detection is more difficult. However, over the past year, several indoor marijuana grows have been eradicated; including the eradication of the largest indoor grow discovered in New Jersey. Additionally, rural areas of the state provide the opportunity for outdoor grows.

Pharmaceutical Diversion: New Jersey has the highest concentration of pharmaceutical and chemical firms in the country. Doctor shopping, prescription forgery, and organized script rings remain the prevalent source of diverted legitimate pharmaceutical drugs in the New Jersey Division. Morris County has seen a rise in arrests for prescription fraud and unlawful possession of prescription medication. The most commonly abused pharmaceuticals are Percocet, OxyContin, Xanax, Vicodin/Vicodin ES, and Hydrocodone/Hydrocodone products. Additionally, the most commonly abused chemicals are GBL, Pseudoephedrine, and Ephedrine. 

•  In September, New Jersey Division, FBI, the U.S. Postal Inspection Service and the Food and Drug Administration's office of criminal investigations seized a steroid lab in a Sayreville basement that produced "massive quantities" of the illegal drugs. The individual who operated the lab out of his house, on a quiet residential cul-de-sac, was arrested and charged with manufacturing, possessing and distributing anabolic steroids. A search of the lab resulted in the seizure of 1.5 kilograms of raw steroid powders, about 10,000 steroid tablets, $56,000 USC, more than 40,000 doses of anabolic steroids, various chemicals including stanozolol, testosterone and nandrolone, equipment used to mix and produce the muscle-building drugs, and two semi-automatic weapons.

•  In September 2007, a Randolph, NJ podiatric surgeon and his wife were arrested on drug distribution charges. The doctor, also a registered pharmacist, had issued 31 prescriptions for painkillers and mild tranquilizers as a method of payment, for work performed for the doctor.

•  In October 2007, “Operation Redirect” resulted in the arrests of 87 people and the disruption of a drug trafficking network that distributed cocaine and oxycodone in and around Morris County.

Gangs: The presence of street gangs in New Jersey is now a notable priority for law enforcement. Intelligence gaps exist in regards to the intelligence surrounding the integration of street gangs in the drug trade in certain areas of the state. The NJ State Police has initiated “Operation Cease Fire” to address the gang problem in the big cities in NJ, to include the cities of Elizabeth and Plainfield in Union County. Intelligence information received indicates that the CRIPS are the most powerful gang in Elizabeth, NJ, over the BLOODS who have many more members than the CRIPS. In Union County, NJ there are 867 “verified gang members” and 447 “unverified gang members.” 

Since the dismantling of several major local drug trafficking organizations, in particular the ET HAK Organization, gangs have taken over the drug trade. Reportedly, the BLOODS, CRIPS and LATIN KINGS gangs control the Greater Newark area as follows: the North Newark District (Vailsburg to South Orange) is controlled by the LATIN KINGS; the South Newark District (W. Kinney St., Central Ave. to the Elizabeth border) is controlled by the Bloods; the East Newark District (High St. to the borders of Jersey City and Kearny) are controlled by the CRIPS; and the West Newark District (Martin Luther King Blvd. to Irvington and Hillside) is controlled by the BLOODS. The CRIPS are also prevalent in Irvington, NJ.

“Operation Direct Pressure” was an investigation targeting the growing violence in local towns in the county. It was coordinated by the Morris County Prosecutors Office Narcotics/Gambling Unit and included Federal, state county and municipal law enforcement agencies. This was the first operation in the history of Morris County to focus on street gang criminal activity. In October 2006, two hundred and seventy five (275) law enforcement personnel executed search, arrest and seizure warrants at various locations in three counties. These warrants revealed an active presence of the BLOODS in the area, and uncovered a practice of recruitment amongst school age children. Over fifty individuals, eleven of which were active BLOODS members, were arrested. 

In the Southern part of the state, there has been an ongoing street war between two rival BLOODS sets: Sex, Money, Murder and the Gangster Killer Bloods. This conflict has resulted in multiple shootings and assaults in Trenton, NJ. Members of the BLOODS street gang have also been observed conducting narcotics transactions from residences in beach towns such as North Wildwood. 

Financial: Intelligence confirms that drug proceeds continue to be transported from New Jersey to the drug source using a variety of methods. Drug trafficking organizations favor bulk currency shipments, usually in concealed compartments in vehicles. However, some organizations prefer to transfer their proceeds electronically, while other violators go to the Atlantic City casinos, purchase $10,000 to $15,000 in chips in order to convert the chips into checks, and send the checks to Colombia. In one instance, information received about one organization detailed the movement of drug money through the stock market. The leader of this organization stated that he could move $50,000 or more at a time, and that the money could be in Colombia within three days.

Other organizations are becoming more sophisticated in their methods of concealing their ill gotten gains. One source of information has revealed one method of using real estate to hide drug related proceeds. Individuals in the northern New Jersey area are laundering drug proceeds through purchasing real estate property. These individuals are operating from a legitimate real estate business to hide their illegal activity. 

Drug trafficking organizations continue to favor bulk currency shipments. It was recently reported that the size of bulk shipments are decreasing to minimize risk of detection and minimize loss if seized. The use of money remitters is also prevalent with couriers being paid $12.00 for every $1,000.00 sent. Couriers are typically provided with $30,000.00 which is sent out in $1,000.00 increments to 10 to 12 different recipients. The popularity of the $1,000.00 increment for wire transfers and money remitters indicates a comfort level of risk has been reached relating to law enforcement suspicion and the appearance of structuring patterns.

DEA Mobile Enforcement Teams: This cooperative program with state and local law enforcement counterparts was conceived in 1995 in response to the overwhelming problem of drug-related violent crime in towns and cities across the nation. Since the inception of the MET Program, 473 deployments have been completed nationwide, resulting in 19,643 arrests. There have been 19 MET deployments in the State of New Jersey since the inception of the program: Asbury Park, Camden, Paterson, Atlantic City, Lakewood, Passaic, Plainfield, Pleasantville, Trenton, Long Branch, Jersey City, Newark (2), Elizabeth (3), Perth Amboy, Orange, and Asbury Park.

DEA Regional Enforcement Teams: This program was designed to augment existing DEA division resources by targeting drug organizations operating in the United States where there is a lack of sufficient local drug law enforcement. This program was conceived in 1999 in response to the threat posed by drug trafficking organizations that have established networks of cells to conduct drug trafficking operations in smaller, non-traditional trafficking locations in the United States. As of January 31, 2005, there have been 27 deployments nationwide, and one deployment in the U.S. Virgin Islands, resulting in 671 arrests. There has been one RET deployment in the state of New Jersey since the inception of the program, in Camden.

More information about the Newark Division Office.

Sources

Factsheet last updated: 3/2008

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