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New England High Intensity Drug Trafficking Area Drug Market Analysis
June 2007

Production

Asian DTOs are establishing increasing numbers of hydroponically grown cannabis operations in the New England HIDTA region and often purchase houses in the area for the sole purpose of producing marijuana. These DTOs arrange for individuals, either Asian criminals or "big losers" who need to pay off debts from local casinos, to live in the houses and cultivate the cannabis. The cultivators often work for the Asian DTOs as indentured servants for a period of time and must pay any debts owed to the DTO. Upon completion of their service, the cultivators own the house in which the grow operation is located. In December 2006 law enforcement officers seized a sophisticated hydroponic cannabis grow operation in New Hampshire. Vietnamese naturalized citizens had purchased 15 houses (valued between $400,000 and $500,000 each) in upscale neighborhoods. They had diverted electricity through the underground utilities and had outfitted the grow operations with timers and grow lights. The grow operation was set on 90-day cycles from start to finish (nursery to cultivation). On average, 1,000 hydroponically grown cannabis plants were located in the basements of 11 of these houses. The Vietnamese criminals anticipated a particularly large profit from this operation because hydroponic marijuana sells for approximately $2,500 to $4,500 per pound in New England, compared with $1,000 per pound for commercial-grade Mexican marijuana.

Methamphetamine production poses a relatively low threat to the New England HIDTA region. The number of methamphetamine laboratories seized in New England decreased from 16 in 2005 to 12 in 2006. Five of the 12 laboratories seized were located in New Hampshire, primarily in the central, rural part of the state. One methamphetamine laboratory--seized in Providence--was the first laboratory seized in Rhode Island since 2003. Only gram or personal use quantities could be produced in all the methamphetamine laboratories seized in 2006.

Heroin combined with clandestinely produced fentanyl has been seized by law enforcement officers in Maine and New Hampshire; however, heroin/fentanyl combinations are rare in the New England HIDTA region. In May 2006 some heroin/fentanyl combinations were seized in the Seacoast Area of New Hampshire after two individuals died from an overdose. Law enforcement officers indicated that the heroin/fentanyl combinations originated in New Jersey and Pennsylvania before being transported to New Hampshire. Additionally, in November 2006 law enforcement officers in Portland, Maine, seized heroin/fentanyl combinations.

MDMA production is rare but does occur occasionally in the New England HIDTA region. In 2006 law enforcement officers seized four MDMA laboratories in Massachusetts. The laboratories were small--only personal use quantities of the drug could be produced in them.

Psilocybin mushrooms are produced in the New England HIDTA region on a sporadic basis. In May 2006 law enforcement officers arrested members of a Hartford criminal group who were cultivating and distributing up to 100 pounds of mushrooms per month; this group also distributed kilogram quantities of cocaine. Also in May 2006 law enforcement officers seized 5 pounds of psilocybin mushrooms in Rhode Island while investigating a methamphetamine laboratory.


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