U.S. Department of Justice
National Drug Intelligence Center
New York/New Jersey HIDTA Drug Market Analysis 2010
June 2010
(U) Analysis of indicator data, price and purity data, seizure data, distribution trends, and demand data, shows that drug availability in the NY/NJ HIDTA region varied by type in 2009. Cocaine availability remained relatively high overall, with slight decreases in some markets. Heroin availability was high and increasing. The availability of Canadian high-potency marijuana increased, and surpassed that of Mexican marijuana in some markets. Methamphetamine availability continued to be limited and CPD availability remained high in the NY/NJ HIDTA region.
(LES) Cocaine availability in the NY/NJ HIDTA region has largely returned to normal levels following reported cocaine shortages that began in 2006.46 Cocaine availability remained relatively high overall in 2009 with slight decreases in availability reported in New York City, according to the NYPD.47 Some organizations and abusers had difficulty obtaining their normal supplies of the drug, and cocaine prices increased. The Drug Enforcement Administration (DEA) also reported slightly decreased cocaine availability in Buffalo and Rochester in 2009; however, more than half (74 of 143) of NY/NJ HIDTA survey respondents indicated that powder cocaine availability was high in their areas, while just under half (71) reported the same for crack cocaine.48 NSS data indicate that 2,114 kilograms of cocaine were seized in New York and New Jersey in 2009.
(LES) Heroin availability was high and increased throughout much of the NY/NJ HIDTA region as indicated by high purities, lower prices, and increased milling operations. Heroin availability is increasing in parts of Upstate New York (Albany,49 Cooperstown,50 Ithaca,51 Malone,52 Plattsburgh,53 Syracuse,54 and Ticonderoga), Long Island, and New Jersey. Rising heroin availability in these areas is being driven in part by traffickers from New York City who are branching out to other areas of the HIDTA region and suburban areas of upstate New York to capitalize on larger profit margins. On Long Island, significant increases in heroin availability have led to a rise in heroin abuse, particularly among young people, and a corresponding rise in heroin overdoses and overdose deaths.55 In New Jersey, rising demand for heroin has caused New York City-based DTOs to expand their operations to northern New Jersey, increasing heroin availability there. Markets in northern New Jersey, such as Newark, are also supplying smaller markets in the HIDTA region and in southern New Jersey. NSS data show that more than 508 kilograms of heroin were seized in New York and New Jersey in 2009. More than half (74 of 143) of NY/NJ HIDTA survey respondents reported that heroin availability was high in their areas.56
(U/FOUO) According to DEA's Heroin Domestic Monitor Program (HDMP), the heroin sold in New York City and Newark in 2008 was among the highest purity and lowest priced heroin in the country.57 In 2008, heroin in New York City averaged 47.1 percent pure and in Newark 53.7 percent pure. During the time, the average purity of South American heroin sampled in all participating cities was 33.6 percent. HDMP reports that the price of heroin per milligram pure is $0.66 in New York City and $0.69 in Newark. Heroin prices generally range from $1.30 to $1.50 per milligram pure in most U.S. cities. Heroin abuse now encompasses a broad cross section of society, including chronic abusers in urban areas, residents of suburban and rural communities, and young adults and teenagers who switched to heroin after initially abusing CPDs.
(LES) Heroin milling operations are increasing in several areas of the NY/NJ HIDTA region, including New Jersey, the Bronx, and some upstate cities, indicating a rise in availability of the drug. In Rochester,58 most of the heroin coming into the city is loose heroin and is packaged there for retail distribution. In New Jersey, milling operations, which can package up to 50,000 bags per week,59 are increasing to handle the rising demand for heroin.60 Heroin mills in New York City process significantly larger amounts of heroin for retail sale. In April 2010, four individuals were arrested and approximately 7 kilograms of heroin were seized from a heroin mill in the Bronx. Approximately 500,000 glassine bags of heroin had been packaged there for retail sale. The arrests and seizure resulted from a joint investigation conducted by members of the Special Narcotics Prosecutor's Office, NYPD, and DEA.61 Additionally, in July 2009, one million glassine envelopes of heroin were seized in New York City in connection with another investigation.62
(LES) Marijuana is widely available in all areas of the HIDTA region. All NY/NJ HIDTA survey respondents reported that marijuana availability was moderate or high in their areas.63 The availability of Canadian high-potency marijuana is increasing in the region, surpassing the amount of Mexican marijuana in some areas, such as Albany and Syracuse in New York and in parts of New Jersey.64 Prices for high-potency marijuana are $2,500 to $5,500 per pound in Albany and as much as $3,000 to $7,000 per pound in New York City. High prices are attributed to a rise in THC (tetrahydrocannabinol) levels, which have increased from 9.8 in 2005 to 11.9 in 2009, and not to lower availability of the drug.65 NSS data reveal that 10,339 kilograms of marijuana were seized in New York and New Jersey in 2009. Marijuana is also cultivated in areas throughout the NY/NJ HIDTA region. Fifty-one percent (73 of 143) of survey respondents reported that marijuana was cultivated indoors in their areas, and DEA reports that the number of seized indoor grows in the HIDTA region increased from 82 in 2007 to 117 in 2009.66 Further, 38 percent (54 of 143) of respondents reported outdoor cultivation in their areas.
(U) Some (17 of 143) law enforcement agencies in the NY/NJ HIDTA region report that CPD diversion and abuse pose the greatest drug threat to their areas, in part because of increases in associated crime and gang involvement in distribution. Officers in Greenburgh and Evans, New York, and Verona and East Brunswick, New Jersey, report that CPD distribution and abuse contribute to property crime in their areas. Officers in Evans and East Brunswick also indicate that CPD distribution and abuse contribute to violent crime in their areas. Additionally, street gang members are involved in CPD diversion and distribution in the NY/NJ HIDTA region. Thirty-two percent (45 of 143) of those surveyed reported moderate to high levels of street gang involvement in CPD distribution.
(U) CPD Distribution Ring Disrupted A recent investigation of an Essex County, New Jersey, pharmacy led to the arrests of members of a CPD distribution ring that diverted more than 15,000 OxyContin tablets per week and generated profits of nearly $1 million per month from 2007 to 2010. The group was headed by a pharmacy owner who filled illegal prescriptions for the drug and purchased nearly 480,000 dosage units of oxycodone products in 2009--more than six times the average for a pharmacy of that size. Search warrants resulted in the seizure of three firearms, OxyContin tablets, fraudulent prescriptions and prescription blanks, anabolic steroids, and approximately $500,000 in cash. The investigation was conducted jointly by DEA, the Elizabeth Police Department, the Essex County Sheriff's Office, the Federal Bureau of Investigation (FBI), the Newark Police Department, the Nutley Police Department, and the U.S. Attorney's Office.67 Source: U.S. Department of Justice, Drug Enforcement Administration. |
(U) The availability of CPDs remains high in the NY/NJ HIDTA region, particularly in Upstate New York68 and some areas of New Jersey, such as Bergen and Essex Counties. CPDs in highest demand are prescription opioids, such as OxyContin, Percocet, and Vicodin.69 Increased CPD abuse is fueling the heroin abuse problem in the region as a significant number of CPD abusers are switching to heroin because of its higher potency and greater affordability. Sixty-eight percent (97 of 143) of HIDTA survey respondents reported that CPD availability was high in their areas.70 This was a greater percentage than for any other drug except marijuana.
(U) Operation Medicine Cabinet New Jersey Yields More Than 9,000 Pounds of Prescription and Over-the-Counter Medicine On November 14, 2009, more than 9,000 pounds (3.5 million tablets) of prescription and over-the-counter medicine with a street value of more than $35 million were collected during Operation Medicine Cabinet New Jersey. This operation--the first statewide day of disposal for unused, unwanted, and expired medicine in the nation--was host to collection sites at 440 local police and sheriff departments in all 21 New Jersey counties. According to the Partnership for a Drug-Free New Jersey, Operation Medicine Cabinet New Jersey drew unprecedented attention to the issue of CPD and over-the-counter medicine abuse and caused tens of thousands of New Jersey residents to look at their medicine cabinets as a potential source for young people to access highly addictive and deadly drugs. Source: Drug Enforcement Administration. (U) Prescription Drug Monitoring Programs Prescription Drug Monitoring Programs (PDMPs) limit traditional diversion methods by enabling practitioners and pharmacists to monitor patients' prescription drug use and intervene when diversion or abuse or both are suspected. PDMPs are systems in which CPD data are collected in a database, centralized by each state, and administered by an authorized state agency to facilitate the early detection of trends in diversion and abuse. Data collected include the physician visited, the number of times the physician is visited, the drugs for which each individual receives a prescription, the quantity of drugs prescribed, and the pharmacy or pharmacies that filled the prescriptions. Each state controls the language of its PDMP with regard to how the information gathered through the program will be shared, not only within the state, but also with other states. For instance, one PDMP may share information among law enforcement, treatment providers, physicians, and pharmacists within the state but not with any agency in other states. Another may opt to share this data only with physicians and pharmacists nationwide, while a third may choose to share all its data with all other state agencies. As of January 1, 2010, New York had implemented an operational PDMP in an effort to stem the diversion of CPDs; New Jersey has enacted legislation requiring a PDMP, but has yet to fund it. Source: Alliance of States With Prescription Monitoring Programs. |
(LES) MDMA is available in most areas of the NY/NJ HIDTA region and availability is increasing in New York City and Buffalo.71 Traffickers of other illicit drugs are now distributing MDMA, an indication that the drug is being sold at a greater rate and to a wider customer base in the HIDTA region. DEA reports that Dominican DTOs in New York City are increasing their involvement in MDMA distribution.72 MDMA availability in Buffalo is increasing and some cocaine and crack cocaine dealers are now selling MDMA in addition to or instead of cocaine.73 These dealers are attracted to the expanding customer base, high profit margins, and lack of violence associated with the MDMA market.74 There has also been an increase in the availability and seizure of MDMA tablets produced in Canada and adulterated with other synthetic drugs. The tablets, known as "Double Stacks," often contain large percentages of methamphetamine or benzylpiperazine (BZP).75 NSS data indicate that more than 92 kilograms and 480,724 dosage units of MDMA were seized in New York and New Jersey in 2009. Most survey respondents in the region (80 of 143) indicated that MDMA availability was moderate in their areas.76
(LES) Methamphetamine availability is low in the NY/NJ HIDTA region. In New York City, methamphetamine is available only to a limited degree and is confined to certain user groups.77 NSS data show that 14 kilograms of methamphetamine were seized in New York and New Jersey in 2009. Eighty-nine percent (127 of 143) of NY/NJ HIDTA survey respondents reported that methamphetamine availability was low or that the drug was not available in their areas.78 Despite limited availability and abuse of the drug, seizures of methamphetamine have been reported in the region. (See text box.)
(U) Largest Mexican Ice Methamphetamine Seizure in New Jersey History On December 3, 2008, law enforcement officers in New Jersey seized 165 pounds of ice methamphetamine worth an estimated $11 million--the largest seizure of ice methamphetamine in New Jersey history--and arrested a Texas man, a member of a Mexican DTO that transported illicit drugs to New Jersey and surrounding areas. The man was arrested in West Paterson, New Jersey, while driving a refrigerated tractor-trailer full of produce. The methamphetamine was packaged in plastic food-storage containers, wrapped in black duct tape, and commingled with crates of produce. Source: Drug Enforcement Administration. |
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