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U.S. Department of Justice
National Drug Intelligence Center
Midwest HIDTA Drug Market Analysis 2010
May 2010
Methamphetamine and cocaine abuse is the most critical drug abuse concern in the HIDTA. Methamphetamine abuse severely strains the resources of public health departments, treatment centers, and social services agencies in the Midwest HIDTA region. Methamphetamine-related domestic violence, child abuse, and child neglect have burdened local foster care systems and social services. Because of methamphetamine's highly addictive nature, longer treatment programs and high recidivism rates encumber treatment centers in the area. Crack cocaine abuse continues to be a serious problem in many metropolitan areas of the Midwest HIDTA, and powder cocaine abuse increased in several HIDTA cities, including Grand Forks, in 2009.
The abuse of heroin and CPDs is also problematic in certain areas of the Midwest HIDTA region. Law enforcement officials in Kansas and Missourig report increased heroin arrests and seizures, indicating increased heroin availability and abuse. Of significant concern to law enforcement and public health officials are the varied street-level heroin purities that sometimes result in heroin-related overdose deaths. In 2009, law enforcement officials in several markets and many smaller towns and rural counties, especially those in North Dakota, reported high levels of abuse as well as increased seizures and controlled purchases of CPDs. Marijuana abuse is pervasive throughout the Midwest HIDTA region but poses a lesser concern to public health and law enforcement officials than the abuse of methamphetamine or cocaine--drugs that are more addictive and have a greater potential for overdosing. Commercial-grade and high-potency marijuana are available and abused throughout the region. Officials in Grand Forks, Kansas City, and Rapid City report an increase in the availability and abuse of high-potency marijuana in 2009.
Mexican DTOs and criminal groups generate hundreds of millions of dollars in illicit drug proceeds annually in the Midwest HIDTA region, most of which is transported in bulk cash shipments to other destinations in the United States and Mexico for laundering. Illicit proceeds--including those generated in outlying markets--are consolidated by traffickers within the HIDTA's market areas for shipment to drug source cities, including El Paso and Houston, Texas, and Phoenix and Tucson, Arizona, as well as to Mexico. Traffickers transport bulk cash primarily via private and commercial vehicles that are often equipped with hidden compartments. For example, in May 2009 the Kansas Highway Patrol seized almost $654,000 from a private vehicle on U.S. Highway 54 en route to El Paso from Kansas City; the currency was concealed in three plastic bags stored in a manufactured compartment.
Mexican DTOs and other traffickers in the Midwest HIDTA region also use money services businesses (MSBs) such as money remitters and check cashing firms to launder drug proceeds. Mexican traffickers in the region also invest drug proceeds in real estate and businesses as well as expensive items, including jewelry and luxury vehicles. They frequently purchase cash-intensive businesses such as bars, jewelry stores, restaurants, and used car lots and commingle drug proceeds with profits generated at the business. Some wholesale-level traffickers in the HIDTA region are also using electronic commerce, such as digital currency, private automated teller machines (ATMs), mobile payments,h and online payment systems, to launder illicit proceeds. In addition, law enforcement officials in Bismarck, North Dakota; Grand Island, Nebraska; Pittsburg, Kansas; Kansas City and St. Charles, Missouri; indicate that some traffickers accept prepaid cards for drug payments.
g. Many cities in eastern Missouri reported an increase in CPD abuse during 2009. These cities fall within St. Louis's sphere of influence, where heroin abuse is much more prevalent than in other areas of the HIDTA region. This rise in CPD abuse may be due to heroin abusers seeking alternatives.
h. Mobile payments are any payments activated or confirmed by a mobile device, such as a cellular telephone.
UNCLASSIFIED
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