National Drug Intelligence Center   Lake County High Intensity Drug Trafficking Area Drug Market Analysis 2009   February 2009

Drug Threat Overview

Cocaine, particularly crack, poses the greatest drug threat to the Lake County HIDTA region. Mexican DTOs transport wholesale quantities of powder cocaine to the HIDTA region from Mexico, the Southwest Border area, and Chicago. In addition, street gangs from Chicago supply gang members and independent dealers in the Lake County HIDTA region with wholesale quantities of powder cocaine that is mostly converted to crack locally and distributed by numerous street gangs and independent dealers. In the second half of 2008, law enforcement officials in the HIDTA region reported decreased cocaine availability, evidenced by increased prices at the wholesale level. Retail-level cocaine availability and prices remained stable during that same period. However, according to law enforcement reporting, the weak local economy has compelled some dealers to sell smaller ten-dollar rocks of crack cocaine that are more affordable to customers than larger twenty-dollar rocks that typically had been sold in previous years. Retail-level distributors, particularly street gangs, engage in violent criminal activity to protect their drug supplies, distribution territories, and illicit drug proceeds, further contributing to the threat posed by cocaine to the region.

Heroin is readily available and abused in the Lake County HIDTA region. Chicago-based Mexican and Colombian drug traffickers control most wholesale heroin transportation to and distribution in to the HIDTA region. Mexican traffickers and street gangs in Lake County obtain heroin from Chicago, Mexico, and the Southwest Border area for distribution in the HIDTA region. Most of the heroin available in the HIDTA region is South American (SA); however, other types, including Southeast Asian (SEA), Southwest Asian (SWA), and Mexican black tar heroin and brown powder heroin are also available. Heroin abusers, particularly young Caucasians from affluent suburban areas in the southern portion of the region and in neighboring Porter County, typically travel to northern cities or Chicago to purchase heroin. In fact, street gangs in Gary operate open-air heroin markets near off-ramps of exits along I-80/94 to accommodate out-of-town heroin abusers who regularly purchase the drug.

Commercial-grade Mexican marijuana is the most widely available and abused illicit drug in Lake County; the availability of and demand for high-potency marijuana are increasing. Mexican DTOs typically transport marijuana, often in multiton quantities, to the region from locations along the Southwest Border and from Chicago, using private vehicles and tractor-trailers. Street gangs and independent dealers are the principal retail marijuana distributors in the region. Law enforcement officials report that in areas of the HIDTA region where the local economy declined sharply in 2008, individuals began to abuse cheap, commercial-grade marijuana, rather than more expensive drugs. Law enforcement officials also report increased local production of high-potency marijuana, raising availability of the drug in Lake County. For example, in 2008 approximately 1,376 high-potency cannabis plants were seized from indoor grows through Lake County HIDTA initiatives from two grow sites in Schererville and Hammond. In Schererville law enforcement officials seized 776 cannabis plants from a grow site established by a Vietnamese national from Chicago. (See text box.) In Hammond law enforcement officials seized approximately 600 cannabis plants from a grow site established in a residence.

The availability and abuse of methamphetamine, MDMA, and diverted controlled prescription drugs (CPDs) vary throughout the region. Methamphetamine availability and abuse are at low levels in Lake County. Local powder methamphetamine production is limited; some ice methamphetamine is transported through the region by Mexican DTOs for distribution in midwestern markets. Law enforcement officials in the region report increased availability of MDMA. African American and Hispanic street gangs, typically supplied by Canada-based Asian traffickers, are the primary retail-level distributors of MDMA in Lake County. The availability of CPDs such as hydrocodone, oxycodone, and methadone is stable. CPD abuse and distribution have not risen to a high law enforcement priority. Abusers typically obtain CPDs by doctor-shopping and theft (burglaries, armed robberies, employee pilferage, and customer theft) from pharmacies and hospitals. Additionally, some patients with legitimate prescriptions for controlled drugs sell a portion of their prescription or have it stolen by friends, family, or strangers.

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Drug Trafficking Organizations

Mexican DTOs based in Chicago and Lake County pose the greatest organized drug trafficking threat to the Lake County HIDTA region. Chicago-based Mexican DTOs have expanded their illicit drug operations into Lake County, using commercial and residential buildings in the county for the storage and transshipment of large quantities of cocaine and marijuana and smaller quantities of heroin and methamphetamine destined for drug markets in the Great Lakes, Mid-Atlantic, Northeast, and Southeast Regions of the United States. Mexican traffickers based in Lake County, particularly in East Chicago and Hammond, also transport wholesale quantities of illicit drugs to the HIDTA region from locations along the Southwest Border and from Chicago.

Mexican DTOs and other trafficking groups based in Chicago supply street gangs and independent dealers in Lake County with wholesale quantities of cocaine, heroin, and marijuana for local distribution. Lake County distributors often travel the short distance to Chicago to purchase their illicit drug supplies. Colombian DTOs in Chicago supply cocaine and SA heroin; they often contract with Mexican traffickers to smuggle these drugs to the region on their behalf. Nigerian and other West African traffickers are the primary suppliers of limited quantities of SWA and SEA heroin available in the region; they smuggle multiounce quantities of heroin into Chicago through package delivery services and couriers on commercial airlines. Asian, Albanian, and Caucasian traffickers in Chicago supply local distributors with wholesale quantities of high-potency Canadian marijuana and MDMA. Some drug traffickers have relocated from Chicago into the HIDTA region, particularly since the late 1990s. This trend continued in 2008, evidenced by the seizure of an indoor cannabis grow in Lake County, operated by a Vietnamese male from Chicago who had relocated to Schererville.

African American and Hispanic street gang members are the primary retail distributors of illicit drugs in metropolitan areas of the HIDTA region, specifically Gary, Hammond, and East Chicago. Street gangs such as Gangster Disciples, Latin Kings, Imperial Gangsters, and Vice Lords obtain wholesale amounts of powder cocaine, heroin, and marijuana from Mexican DTOs operating in Lake County and in Chicago. Distribution of crack cocaine, marijuana, and heroin is the principal source of income for Lake County street gang members.

Street gangs that distribute illicit drugs in Lake County vary in their degree of organization, hierarchical structure, leadership, and use of technology. Most Lake County gangs are composed of independent dealers who maintain neighborhood gang affiliations and operate in an unorganized and unstructured environment. Members of loosely structured gangs typically focus on generating profits from independent drug distribution operations. They use their gang affiliation to support their illicit activities. For example, members of loosely structured gangs coordinate independent drug distribution operations and use their gang membership to intimidate other dealers, obtain sources of drugs, acquire firearms, or find persons to support the drug operation. Although these distribution groups are run by gang members, profits typically are kept by individual members selling the drugs and are not sent back to the gang leaders. Some gangs in Lake County are more organized, particularly Hispanic gangs located in East Chicago where some have been linked directly to DTOs in Mexico. East Chicago gangs often operate as midlevel suppliers to other gangs operating in Lake County. Moreover, the use of electronic communication and countersurveillance techniques is more common among street gangs in East Chicago than in other areas of the region. For example, members of the East Chicago Police Department routinely encounter audio and video surveillance systems at drug houses in the city.

Lake County street gangs, which include approximately 2,500 members, also have ties to Chicago-based street gangs. For example, Chicago street gangs supply Lake County street gangs with illicit drugs for distribution. Law enforcement authorities report that street gangs in Lake County are not controlled by Chicago-based street gang members; however, gang membership facilitates the distribution of illicit drugs through gang networks. These associations have been strengthened by the razing of several Chicago public housing projects, resulting in the relocation of some Chicago street gang members to Lake County.

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