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Drug Situation: New York City has long been home to numerous drug trafficking organizations. The city’s large, diverse, multi-class population creates a demand that these organizations are more than willing to serve. New York City also acts as the source for organizations that smuggle drugs to other East Coast destinations and to Canada and Europe.

Cocaine: Colombian and Mexican drug trafficking organizations are the primary transporters and distributors of wholesale amounts of cocaine in New York. These traffickers smuggle multi-hundred kilogram shipments of cocaine to New York via tractor-trailers and containerized cargo and then distribute the cocaine in smaller amounts through many networks in the metropolitan area. New York City based cocaine distribution organizations also serve as the source of supply to organizations operating throughout the eastern United States. Most of the cocaine entering New York is transported in vehicles and tractor-trailers from large distributions centers in border areas (Arizona, California, Florida, and Texas). In March 2006, members of a Mexico-based organization were arrested for smuggling hundreds of kilograms of cocaine to the United Stats, some of which were concealed inside of religious statues of the Virgin Mary.

Cocaine is also a significant problem in Albany and western New York State. Most cocaine distributors in the Albany area have connections to sources in New York City, but some Albany distributors have direct links with organizations in Florida and Puerto Rico.

Crack cocaine is readily available in economically depressed areas in all major New York cities, along with some suburban and semi-rural areas, and is occasionally a source of violence in upstate cities. Such violence usually occurs when new dealers challenge more established dealers over territory. Crack cocaine is typically transported in the form of powdered cocaine and converted into crack by area distributors. However, recent seizures of multi-ounce and kilogram quantities of crack cocaine in New York indicate a change in this dynamic.

Heroin: Heroin is readily available from Colombian and Dominican organizations operating in the New York metropolitan area. Most of the heroin available is of South American origin and Colombia-based traffickers bring some of the purest heroin in the world to the streets of New York, utilizing the same distribution methods and money-laundering techniques they perfected in capturing the cocaine market. In some cases, the same organizations are distributing both cocaine and heroin. Much of the Colombian heroin is smuggled into New York by couriers and ingesters arriving at JFK Airport, on direct flights from Colombia, or after stopovers in Central or South America, or the Caribbean. Colombian heroin trafficking organizations have also developed increasingly sophisticated smuggling methods, including use of cargo shipments, soaking heroin into clothing, secreting them in shoes, furniture, and golf bags, as well as chemically impregnating heroin into plastic, which is then molded into common shapes. The heroin is subsequently recovered using chemical extraction processes.

In February 2006, the arrests of 22 Colombian nationals who were responsible for smuggling over 20 kilograms of heroin into the United States were announced. Members of this organization used varied and unique concealment methods to smuggle over 20 kilograms of heroin into the United States. One method included the use of pure-bred puppies that had heroin packets surgically implanted in them. In one instance, six puppies were found impregnated with a total of three kilograms of liquid heroin packets.

Colombian heroin is also smuggled to New York via Mexico and then by vehicle from the southwest United States, similar to the cocaine route. The heroin trafficking and abuse problem is increasing in upstate New York. Dealers in upstate regions often buy heroin in New York City and then return to their home areas via auto, bus, or train. Currently, some of the high-purity products are finding their way directly to users who are often unaccustomed to the strength.

In July 2006, BAZ MOHAMMAD, the first Afghan heroin kingpin ever extradited from Afghanistan, pled guilty to conspiracy to import heroin into the United States. President George W. Bush previously designated BAZ MOHAMMAD as a foreign narcotics kingpin under the Foreign Narcotics Kingpin Designation Act, which authorizes the President of the United States to make such designations when he determines that a foreign narcotics trafficker presents a threat to the national security, foreign policy, or economy of the United States. Afghanistan President Hamid Karzai authorized the extradition of BAZ MOHAMMAD to the United States in October 2005.

Methamphetamine: While methamphetamine trafficking and abuse in New York State is a less serious problem when compared to heroin, cocaine, crack, and MDMA. New York has a somewhat bifurcated methamphetamine market. In the New York City area, the market is primarily for crystal methamphetamine sourced from the West Coast of the United States. The upstate market is primarily methamphetamine powder supplied by local clandestine labs, which are becoming more common. In December 2006 under Operation Crystal Apple, DEA NY along with the Northern District of NY announced multiple arrests and seizures of drugs and firearms relating to an investigation of distribution in upstate New York, of multiple pounds of methamphetamine supplied from the southwest border. There were a total of 30 methamphetamine lab seizures in New York State in 2006. Seven of these labs were detected and dismantled in New York City and were part of Operation Red Fusion.

Club Drugs: New York continues to experience high levels of importation, trafficking, and abuse of MDMA (Ecstasy). Belgium and the Netherlands remain the main locations for manufacturing and exporting MDMA. However, Canada has recently emerged as a significant source country for MDMA production. There was some local production as evidenced by a seizure of a non-operational MDMA lab in Wales, NY in 2006. MDMA is smuggled into the U.S. via body carriers, overnight mail and air/sea cargo. Israeli drug traffickers initially dominated the MDMA trade. Due to the large profits to be made from MDMA trafficking, other criminal groups are now importing and distributing significant quantities of MDMA. These include, but are not limited to: Dominican traffickers, Russian traffickers, Mexican traffickers, Colombian traffickers, Asian traffickers, and traditional organized crime groups. Additionally, MDMA is distributed by poly-drug trafficking organizations and has become a mainstay in poly-drug trafficking in New York. MDMA is destined for retail sale at New York clubs. Almost all MDMA pills are sold with logos, creating brand names for users to seek out. Other club drugs, such as GHB, ketamine and steroids, while available, are less prominent problems in New York City. In September 2006, under Operation Triple Play, police in Toronto, Canada announced charges in Manhattan federal court against 22 members of a massive Ecstasy-trafficking organization that had smuggled more than $5 million worth of Ecstasy from Canada into the United States for resale.

Marijuana: Most of the marijuana entering the New York City area, and some upstate regions, is of Mexican origin, smuggled primarily by auto/truck transport from the Southwestern United States. The use of containerized cargo and mail/parcel delivery services, such as Federal Express and United Parcel Service, have also been noted. Law enforcement agencies report a continued increase in the shipment of marijuana from Jamaica, transported and distributed by Jamaican trafficking organizations, as well as an increase in the shipment of marijuana from Canada. Canada is a source for a significant quantity of primarily indoor grown marijuana entering New York State.

Khat: Khat is a plant cultivated in Kenya and Ethiopia. The leaves of the plant are usually chewed and held in the cheek. Khat produces feelings of euphoria and stimulation. however side effects include anorexia, heart disease and hallucinations. In July 2006, as part of Operation Somalia Express, law enforcement authorities seized 25 tons of khat worth more than $2 million that was destined for the United States from the Horn of Africa.

Pharmaceutical Diversion: Current investigations indicate that diversion of hydrocodone products such as Vicodin® continues to be a problem in New York. Primary methods of diversion being reported are forged prescriptions, illegal sale and distribution by health care professionals and workers, “doctor shopping” (going to a number of doctors to obtain prescriptions for a controlled pharmaceutical), and employee theft. Oxycodone products (such as OxyContin®), methadone, benzodiazepines (such as alprazolam and diazepam), and fentanyl were also identified as being among the most commonly abused and diverted pharmaceuticals in New York.

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 over two dozen MET deployments in the State of New York since the inception of the program. Locations have included: Niagara Falls, Southampton, Albany, Schenectady, Troy, Amsterdam, Utica, Monticello, Watertown, Poughkeepsie, Newburgh, Mt. Vernon (2), Liberty, Hempstead, Spring Valley, Fallsburg, Geneva, Kingston (2), Middletown, Yonkers, Jefferson County and Montgomery County. In March 2005, the METs prioritized investigations to target and dismantle methamphetamine trafficking organizations and clandestine laboratory operators. In January 2006, the MET concluded a several month long investigation into the methamphetamine activity in the region culminated in the exposure of a methamphetamine lab in Jefferson County. Two individuals were arrested and a second lab was discovered at a remote cabin in Northern Lewis County that resulted in the seizure of 150 grams of a liquid containing methamphetamine and 21 grams of ephedrine, a precursor for the manufacture of methamphetamine. In addition to the eradication of two methamphetamine labs in the north country region, MET members and local police agencies made controlled purchases of narcotics on the streets of Watertown and the surrounding area leading to further arrests and asset seizures. As a result of this investigation, seventeen individuals were arrested on state charges for trafficking narcotics and eleven federal arrests were generated. Eleven properties were searched and seizures included an automobile, a residential home valued at approximately $55,000.00, three weapons and over $16,000.00 in cash. As a result of the efforts of these dedicated agencies, over 194 grams of crack cocaine, with a street value of $19,000.00 was taken off the streets of Jefferson County. In May 2006, the MET concluded a 9-month investigation into the illegal use, sale, manufacture and transportation of illegal drugs in Montgomery County, which resulted in 19 arrests.

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 have been no RET deployments in the state of New York.

Special Topics: New York City is one of the world’s financial capitals, presenting numerous options for the movement and laundering of drug proceeds. Private banking facilities, offshore banking, wire systems, shell corporations, and trade financing have been used to mask illegal activity. Money has also been laundered through currency exchange houses, stock brokerage houses, casinos, automobile dealerships, insurance companies, precious metal and gem dealers, and trading companies. Most recently, cyberlaundering and the emergence of e-cash provide an extremely expeditious means of moving large amounts of money. Additionally, numerous large scale money transportation and/or money laundering organizations are active in New York, servicing national and international drug organizations. These transportation/laundering organizations routinely conduct multi-hundred thousand dollar “pick ups” of drug cash from trafficking groups. The black market peso exchange and the “hawala” alternate remittance system are also used to move drug proceeds. Despite the extensive financial systems available in New York, many trafficking organizations opt to physically smuggle bulk cash out of the area and/or out of the United States.

In January MARTIN TREMBLAY, a Canadian national and President and Managing Director of the Bahamas-based investment firm Dominion Investments, Ltd was arrested and charged with participating in a long-term money laundering scheme. From 1998 through December 2005, TREMBLAY allegedly conspired with others to launder $1 billion in illegal proceeds for numerous Dominion Investments clients, all in exchange for a substantial commission. In November, Gilberto RODRIGUEZ-OREJUELA and Miguel Angel RODRIGUEZ-OREJUELA, brothers and the leaders of the notorious Cali Cartel in Colombia, pled were sentenced to 87 months’ imprisonment on money-laundering charges. The brothers and their criminal associates invested millions of dollars of the Cali Cartel's cocaine proceeds in ostensibly legitimate companies, including companies involved in the production and sale of pharmaceutical drugs.

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Factsheet last updated: 6/2007