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National Drug Intelligence Center |
Illicit drug abuse levels in the Northern California HIDTA region, particularly those for ice methamphetamine, are high. Data from the Substance Abuse and Mental Health Services Administration (SAMHSA) Treatment Episode Data Set (TEDS) reveal that methamphetamines/amphetamines were identified more often than any other drug, including alcohol, as the primary substance of abuse for admissions to publicly funded treatment facilities in California from 2002 through 2006 (the latest year for which data are available). High-potency marijuana, cocaine, crack, heroin, and ODDs are also commonly distributed and abused within the HIDTA region.
Abuse of diverted pharmaceuticals is an increasing problem within the region, especially for teenagers and young adults. According to treatment providers, the most sought-after and abused pharmaceuticals are benzodiazepines, hydrocodones, oxycodones, synthetic opiates, and Schedule IV diet drugs. Distributors and abusers commonly divert pharmaceutical drugs through doctor-shopping, drug thefts, prescription forgery, and Internet purchases. The fraudulent and illegal sale of prescription drugs over the Internet is a particular concern to law enforcement officials and treatment providers in the region.
According to law enforcement reporting, Internet pharmacies, physicians, web providers, and credit card processors involved in the illegal dispensing of pharmaceuticals have increased their activity in the region over the past several years. As such, they have come under increased law enforcement scrutiny. For instance, in January 2007 DEA San Francisco announced the indictment of three executives of an east coast Internet pharmacy that had been operating across the United States, including in the Bay Area. According to the indictment, the pharmacy had allegedly been using the Internet to distribute and dispense controlled substances to customers without requiring a face-to-face meeting or consultation with a physician. The pharmacy had allegedly required customers to fill out an online questionnaire, which received little or no consideration by a physician before being approved.
Traffickers use a variety of methods to launder illegal drug proceeds in the HIDTA region. Mexican DTOs transport illicit drug proceeds primarily in bulk from the region to locations at or near the U.S.-Mexico border. These proceeds are generally commingled with illicit drug proceeds generated in other areas and smuggled into Mexico for eventual repatriation. Asian traffickers also use bulk transport to launder drug proceeds, but to a lesser extent. They smuggle bulk currency to Canada in private and commercial vehicles or to Asian countries in aircraft, maritime conveyances, and package delivery services.
Mexican and Asian traffickers also launder drug proceeds through money transmittal businesses located in their own ethnic communities. Moreover, they use businesses such as import/export companies for wire remittances. Traffickers, particularly Asian criminal groups, also launder money through informal value transfer systems (IVTSs) such as hawalas, hundi, and fei ch'ien. Many of these IVTSs are culturally based and, because of their clandestine nature, are difficult to track. Illicit money transfers made through these underground systems are easily concealed in the high volume of legal transfers made within the systems.
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