file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 1 of 72 9/15/2010 3:23 PM

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1 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM

2 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM THREAT ASSESSMENT I. Executive Summary Page 3 II. Overview Page 5 III. Production Page 17 IV. Transportation Page 23 V. Distribution Page 32 VI. Illicit Finance Page 36 VII. Outlook Page 38 VII. Methodology Page 40 IX. Appendices Page 41 X. Attachment Portland Specific Drug Data Page 44 COUNTER-DRUG STRATEGY XI. Introduction Page 53 XII. Mission and Vision Statements Page 54

3 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM XIII. Concept of Strategy Page 55 XIV. HIDTA Goal 1 Page 61 Dismantle and Disrupt Drug Trafficking Organizations XV. HIDTA Goal 2 Page 64 I. EXECUTIVE SUMMARY Increase the Efficiency of Law Enforcement Agencies Participating in HIDTAs XVI. Endnotes Page 72 Illicit substance use in Oregon exceeds the national per capita average. From 2006 through 2007, Oregon ranked in the top one-fifth of states with reported rates of past month substance use by people aged 18 and older 1. A 2008 study conducted by ECONorthwest estimated the total direct economic costs from illicit drug use in Oregon at nearly $2.7 billion in Of the estimated $2.7 billion in costs, 70 percent was attributed to lost earnings from victims of crime and illicit drug users who perpetrate crime, 20 percent was tied to drug enforcement and the criminal justice system, and 10 percent was connected to healthcare costs 2. The problem is compounded as drug users and distributors often engage in illegal activities such as money laundering, identity theft, burglaries, property theft, fraud and other crimes to support drug addictions and finance trafficking and distribution operations. The largest proportion of offenders in the Oregon corrections population (includes incarcerated offenders and those on parole or probation) is in the system due primarily to drug offenses a (23%), nearly twice the number for assault (13%), and more than twice the number for burglary (9%) and theft (10%) offense categories 3. Drug-related deaths decreased seven percent statewide in 2009, with fatalities dropping from 229 in 2008 to 213 in Deaths related to heroin use comprised the highest number of fatalities, increasing seven percent from 2008 (119) to 2009 (127), the highest number since The second highest number of deaths was related to methamphetamine, which declined 18 percent between 2008 (106) and 2009 (87). Cocaine-related deaths dropped 37 percent to 32 deaths in 2009 from 51 reported in Multnomah County, the most populous county in Oregon, reported the highest number of drug-related deaths statewide with 94 deaths in Lane County ranked second with 33 fatalities in 2009, followed by Clackamas (15), Washington (15), and Marion (13) counties. Heroin accounted for the most deaths in Multnomah (63), Lane (21), Washington (10), Clackamas (9), and Marion (9) counties. Methamphetamine and marijuana use and trafficking remain widespread in Oregon. Marijuana production is also widespread and expanding in scale. Methamphetamine continues to be widely used and trafficked throughout the HIDTA region. However, reported local methamphetamine lab seizures remain at low levels. From 2004 to 2009, labs reported by law enforcement declined by 97 percent due largely to strict pseudoephedrine control legislation enacted by the Oregon legislature, as well as the enactment of the Federal Combat Methamphetamine Epidemic Act of 2005.

4 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM Analysis suggests that despite continued declines reflected by some indicators, methamphetamine use remains at a high level in the state. While some regional differences exist, more than 80 percent of Oregon law enforcement agencies surveyed in 2010 reported methamphetamine as their area s greatest drug threat, with the majority indicating methamphetamine as the drug which contributes most toward violent crime (89%) and property crime (98%). Methamphetamine-related crime, such as identity theft, abused and neglected children, and other serious person and property crimes, continues to be a daily problem and is prevalent throughout the state. During the last six years, the form of methamphetamine being seized by law enforcement has switched from powder to a form called "ice" or crystal meth. Oregon legislation to restrict the a Includes categories of possession, manufacturing and delivery. availability of pseudoephedrine appears to have reduced the number of methamphetamine labs reported to be operating in the state; however, these new laws may have contributed to an increase in trafficking of precursor ingredients and the finished product, such as Mexican-made "ice". While reported methamphetamine labs declined to an historic low in Oregon during 2009 (13), crystal meth continued to be available as Mexican drug traffickers imported the finished product from labs outside the state and from Mexico. In addition to methamphetamine use, marijuana use, cultivation, and trafficking are also expanding. Law enforcement officers report that the size of outdoor marijuana cultivation sites discovered on public and private lands in Oregon has increased over the past several years -- primarily due to the expansion of operations by Mexican Drug Trafficking Organizations (DTOs). The number of plants seized from outdoor cultivation operations in Oregon in 2009 was more than five times the number seized in The discovered plants number in the thousands per grow as opposed to hundreds seized in previous years. The harvested product is distributed both locally and nationally. Additionally, federal authorities report that Asian crime groups are increasingly involved in marijuana trafficking and have established large coordinated indoor grow operations in Oregon, Washington and Northern California. Oregon s Medical Marijuana Act b, which allows for quantities of marijuana to be grown and used for pain suppression, continues to be exploited by local producers who use it to facilitate illegal cultivation for commercial purposes. The law presents a major barrier to effective enforcement and prosecution efforts and conflicts with the national safety regulations and requirements for medicines established by the Food and Drug Administration (FDA). Heroin, cocaine, and non-medical prescription drug use constitute the next level of major drug threat to Oregon communities. The threat posed by non-prescribed use of prescription drugs has grown in recent years. The abuse of prescription drugs appears to be an emerging market in Oregon and reflects a national trend. Treatment admissions increased more than 350 percent in Oregon in the last 10 years (CY CY 2009), surpassing admissions for cocaine in The Oregon HIDTA counter-drug enforcement strategy is intended to be responsive to the above noted threat indicators and to complement legislative, treatment, and prevention strategies within the state and HIDTA regions. Community anti-drug coalitions are active in Oregon and the non-profit Oregon Partnership has been an important catalyst for community action and prevention education.

5 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM As of this writing, the Oregon HIDTA participating agencies have identified 140 DTOs and six Money Laundering Organizations (MLOs) with foreign and domestic connections that are actively operating in the HIDTA counties and throughout Oregon. Nearly all DTOs in the state are considered poly-drug organizations, using well-established routes to traffic a variety of drugs to meet current demand. Mexican and Caucasian DTOs control the majority of the transportation and distribution of illicit drugs into and out of the HIDTA region c as well b Oregon Revised Statutes c The HIDTA region includes Clackamas, Deschutes, Douglas, Lane, Jackson, Marion, Multnomah, Umatilla, and Washington counties and the Warm Springs Indian Reservation. as the other twenty-seven (27) Oregon counties. These DTOs are also the primary traffickers of cocaine, heroin, marijuana, and methamphetamine used in the HIDTA region. Federal reporting indicates that Mexican DTOs are exerting more control over illicit drug trafficking throughout the nation, including Oregon. Mexican DTOs dominate the transportation and distribution of heroin, cocaine, and Mexican-produced marijuana while Caucasian DTOs control transportation and distribution of locally-produced indoor marijuana. Methamphetamine trafficking is increasingly controlled by Mexican DTOs. Other DTOs and criminal groups, such as Outlaw Motorcycle Gangs (OMGs), street gangs, and Asian, Canadian, Honduran, Middle Eastern, and Russian DTOs, also transport and distribute drugs, but to a lesser extent. MDMA (3,4-methylenedioxymethamphetamine), GHB (gamma-hydroxybutyric acid), LSD (lysergic acid diethylamide), PCP (phencyclidine), ketamine (ketamine hydrochloride), psilocybin (hallucinogenic mushrooms), and pseudoephedrine are also smuggled into the HIDTA region. Felony drug fugitives pose a significant threat to the citizens of Oregon and, specifically, to the personal safety of Oregon law enforcement officers. The United States Marshal's Service (USMS) Portland office (a HIDTA fugitive task force) recently surveyed federal warrants in the District of Oregon and identified three individuals tied to Regional Priority Targets (RPOT), four individuals tied to Consolidated Priority Targets (CPOT), 40 people tied to Organized Crime Drug Enforcement Task Force (OCDETF) warrants and another 109 individuals connected to active federal felony drug warrants 6. Since 2005 the Oregon USMS has made over 2,000 arrests with more than 60 percent of the arrests classified as drug-related. Furthermore, over 88 percent of individuals arrested by the USMS were classified as violent offenders in II. OVERVIEW Demographics The Oregon HIDTA was established by the Office of National Drug Control Policy (ONDCP) in June of Currently, the Oregon HIDTA Program serves the Warm Springs Indian Reservation as well as the following nine counties: Clackamas, Deschutes, Douglas, Jackson, Lane, Marion, Multnomah, Umatilla and Washington. According to U.S. Census Bureau 2008 estimates, Oregon ranks twenty-seventh in the country in population with more than 3.7 million residents, of which approximately 90 percent are Caucasian, 11 percent Hispanic/Latino, 4 percent Asian, 2 percent African American, 1 percent

6 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM Native American or Alaska Native, less than 0.5 percent Hawaiian or other Pacific Islander, and 2.5 percent two or more 7 races. Seventy percent of the state s population lives in the Willamette Valley, primarily in the major urban centers of Portland, Salem, and Eugene. The other 30 percent reside in rural and small urban areas scattered throughout the state. The combined estimated total population of the HIDTA counties in 2009 was 2,853,065 which represent approximately 75 percent of the state s population. All but one Oregon HIDTA county (Umatilla) was included in the top ten most populous areas in the state, with Multnomah County (724,680) being the most populated 8. Oregon encompasses a land area of 98,380 square miles and is the ninth largest state in the nation. It is bordered by California, Idaho, Nevada, and Washington, and by the Pacific Ocean. Oregon s geography can be divided into six areas: the Oregon Coast, Willamette Valley, Cascade Mountain Range, Columbia River Basin, Eastern Oregon Basin and Range, and the Southern Oregon Basin and Range. Oregon HIDTA covers 23,906 square miles, a land mass nearly the size of West Virginia. Geographically, the Oregon HIDTA region is diverse. Jackson County is located in southern Oregon and borders California to the south and is surrounded by the Cascade and Siskiyou Mountain Ranges. Douglas County is the largest of the HIDTA counties, extending from the Pacific Ocean to the Cascade Range and borders Jackson County in its southeastern section. Lane County is the second largest HIDTA county, extending from the Pacific Ocean to the Cascade Range and bordering Douglas County to the south and Lincoln, Benton, and Linn counties to the north. Deschutes County is located in Central Oregon between the Cascade Mountain Range to the west and the High Desert to the east. Marion County is located south of the Portland metropolitan area and stretches from the Willamette River to the Cascade Mountains encompassing nearly 1,200 square miles. The tri-counties of Clackamas, Multnomah, and Washington (the Portland metropolitan area) extend to the western slopes of Mt. Hood, through the Tualatin Valley with the rugged Columbia River Gorge to the east and the state of Washington to the north. Umatilla County is situated in the northeast corner of Oregon, separated from Washington by the Columbia River, and extending to the Blue Mountain Range. The Warm Springs Indian Reservation is located in the north/central area of Oregon approximately 100 miles southeast of Portland. Warm Springs tribal lands encompass over 1,000 square miles which are situated in the counties of Clackamas, Linn, Jefferson, Marion, and Wasco. Scope of Drug Threats Federal reporting indicates that Mexican DTOs are exerting more control over illicit drug trafficking throughout the nation, including Oregon 9. This is evidenced by the significant increase in the number of known Mexican DTOs reported for CY 2009 over that reported in CY 2005, and the fact that Mexican DTOs now dominate the drug trafficking industry over Caucasian DTOs (Figure 1).

7 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM 1. Methamphetamine Methamphetamine continues to be highly available and widely used throughout the HIDTA region and remains the most serious drug threat to Oregon. According to the National Drug Intelligence Center (NDIC) methamphetamine represents a continued, serious threat to the Pacific Region d and causes significant public safety and health problems for the area 10. Data collected from the Oregon Addictions and Mental Health Division reveals that 26 percent of people entering publicly-funded treatment in 2009 in the HIDTA region reported using methamphetamine, higher than for all other major illicit drugs with the exception of marijuana (33%) 11 (Figure 2).

8 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM Source: Graph derived from client admissions data obtained from the Addictions and Mental Health Division, Oregon Department of Human Services, March Warm Springs Indian Reservation data was not included. Over 80 percent (41 of 50) of Oregon law enforcement agencies surveyed in 2010 reported methamphetamine as the greatest drug threat to their area, with the majority indicating methamphetamine as the drug that contributes most to violent crime (89%) and property crime (98%) 12 (Figure 3). In addition, nearly 80 percent of law enforcement agencies surveyed reported that crystal methamphetamine was highly available in their area during d Pacific Region includes California, Idaho, Nevada, Oregon, and Washington. Analysis of production data suggests continued availability of methamphetamine in Oregon, despite precursor chemical controls put in place in the state and internationally. Most of the methamphetamine available in Oregon is Mexican-based crystal meth and is directly related to methamphetamine production trends in Mexico. Recent federal estimation of production trends in Mexico indicates that while methamphetamine availability declined in the United States in 2007 and early 2008 due largely to strict precursor laws enacted by the Government of Mexico, availability increased by mid-2008 through 2009 as drug cartels effectively altered operations to continue production 14. While these indicators support sustained high levels of methamphetamine availability and use, other measures suggest methamphetamine use may be on the decline.

9 of 72 file:///c:/temp/2011 Oregon HIDTA Threat Assessment and Counter Drug Strateg.html 9/15/2010 3:23 PM According to the Oregon State Medical Examiner Division 15, while the number of fatalities related to methamphetamine use rose 45 percent from 2007 to 2008, the number dropped 18 percent from 2008 (106) to 2009 (87). (Figure 4). Fluctuation in methamphetamine purity may be a factor in the recent rise and fall in related deaths as well as varying availability of the drug and accessibility to treatment services 16. Information evaluated from the Oregon Addiction and Mental Health (AMH) Division revealed that while treatment admissions for amphetamine use (includes methamphetamine) increased 25 percent in the HIDTA region from 2003 through 2005, the number of adults reporting amphetamine as their primary drug of abuse dropped 33 percent from 2005 to 2009, declining 10 percent in the last year (Figure 2, page 7; Figure 5, page 9). Additionally, while the number of inmates who admit to regular methamphetamine use at intake was higher in 2009 than 2005, numbers declined 18 percent from 2006 to Admissions for methamphetamine offenses rose by 59 percent from 2006 to 2009 due largely to the passage of enhanced sentencing laws in ; however, methamphetamine-related arrests declined 26 percent from 2007 to Declines in amphetamine use have also been reported in workplace drug testing. Quest Diagnostics, the nation's largest provider of diagnostic testing, reported a 64 percent drop in the number of people testing positive for amphetamines (primarily methamphetamine) in the general U.S. workforce from 2005 through mid In the last several years, strong precursor restrictions, educational efforts, and law enforcement pressure may have achieved some

10 0 of 72 9/15/2010 3:23 PM measure of success in decreasing the level of methamphetamine addiction in Oregon. However, determining whether reported declines are evidence of an actual drop in the level of methamphetamine use is challenging. While recent declines in some indicators are positive signs and show outward support for diminished methamphetamine use in Oregon, analysis reveals that evidence for a decline is far from certain. For example, treatment admission levels are influenced by resource constraints. According to the Oregon Addictions and Mental Health Division (AMHD), treatment admissions dropped in 2003 as a result of significant cuts in Medicaid funding during 2001 and 2002 (Figure 9, page 14). Medicaid coverage affects people below the 100 percent federal poverty level and represents a sizeable proportion of AMH clients 21. Additional sources of funding were secured in subsequent years; however, a current estimated 75 percent treatment gap exists in the number of people reporting substance use problems and needing treatment and those actually gaining access to treatment 22. Additionally, declines in methamphetamine-related arrest levels in the last couple of years may not be as much an indication of fewer offenders as it is a resource shift in law enforcement from investigating domestic lab production to the more time-consuming effort of identifying and investigating traffickers of crystal meth. Generally, fewer arrests mean fewer referrals for court-ordered treatment. Utilizing workplace drug tests as an indication of a decline in addiction levels is also problematic. A study by the Government

11 1 of 72 9/15/2010 3:23 PM Accountability Office (GAO) revealed that drug testing programs are highly vulnerable to manipulation by drug users who intentionally cheat the system through use of fake identification or drug masking products which are widely available on the internet and virtually undetectable at drug screening labs 23. Additionally, a recent study by Quest Diagnostics shows that while drug testing utilizing hair specimens (detects use over 90 days) mirrored the downward trend shown by urine testing (detects use over 1 to 3 days) between 2005 to 2009, hair data analysis showed a dramatically higher level of use in the general workforce. Analysis of hair samples revealed that methamphetamine positivity rates were nine times that of positivity found through urine tests in Marijuana Marijuana is widely used in the HIDTA region. Availability of the drug continues to rise as production and trafficking have expanded in recent years. According to the AMHD, 7,761 adults admitted to treatment facilities in the nine HIDTA counties reported marijuana as their primary drug of abuse in 2009, a 3 percent increase from the 7,530 admitted in (Figure 2, p. 7). Use among Oregon residents remains high compared to most other states. Data collected from the National Survey on Drug Use and Health reveal that in 2007, Oregon ranked tenth in the nation for marijuana use (self-report of marijuana use in past month) by people aged 12 and older 26. A recent survey of teen perceptions revealed that 42 percent of 12 to 17-year-olds stated they could buy marijuana in a day or less; half of 16 and 17-year-olds surveyed responded that smoking marijuana is more common than smoking cigarettes in their age group 27. Locally-produced marijuana, Canada-produced BC Bud, and Mexico-produced marijuana are available in the Oregon HIDTA region. Law enforcement agencies surveyed in Oregon in 2010 reported a high level of availability of marijuana in the HIDTA region and statewide. A high volume of marijuana is produced from indoor methods which typically yield a better quality product and multiple crops year-around. Recent analysis of marijuana potency (Figure 6) revealed that the average amount of THC (delta9-tetrahydrocannabinol) in non-domestic seized samples has dramatically increased in the United States in the last 10 years, reaching a high of 9.9 percent in the highest level recorded since testing began in Oregon data mirrors this trend with the amount of THC found in indoor marijuana samples averaging 9.8 percent in Testing in 2008 and 2009 also showed that the average amount of THC in marijuana seized in Oregon from indoor and outdoor samples combined (2008=6.1, 2009=6.8) was higher than the average THC in national samples (2008=4.7; 2009=4.6) 28. Increased potency has been attributed to sophisticated growing techniques and may pose greater health risks to users such as acute toxicity and mental impairment. According to the National Center on Addiction and Substance Abuse, the increased potency of THC corresponds to an increase in marijuanarelated teen medical diagnoses, treatment admissions and emergencies 29.

12 2 of 72 9/15/2010 3:23 PM The threat posed by this drug is heightened by exploitation of Oregon s Medical Marijuana law e. The law conflicts with the national safety

13 3 of 72 9/15/2010 3:23 PM regulations and requirements for medicines established by the Food and Drug Administration (FDA). Under the program, each patient is allowed to possess 1.5 pounds of dried marijuana and up to six mature marijuana plants and eighteen seedlings. A typical high quality plant produces one pound of marijuana, so the program, in effect, allows up to 7.5 pounds of marijuana per patient. To put this in perspective, a typical marijuana cigarette, or joint, contains a gram of marijuana, permitting patients to possess the equivalent of about 3,375 joints at any one time. Growers are individuals who are licensed to grow marijuana for up to four patients at a time, allowing a single grower to possess up to six pounds of dried marijuana and up to 24 mature plants at one time. Furthermore, recent changes in the law f have authorized people to register as caregivers to cultivate marijuana for registered OMMP cardholders. Caregivers can have an unlimited number of patients. With six mature plants and eighteen immature plants per patient, caregivers can legally possess e ORS ORS f 573 Or Laws 2007 (SB 161 (2007)). plants numbering in the thousands. This provides a legal loophole for large quantity caregivers to exploit the program by claiming they are growing for legitimate OMMP patients. As of April 2010, there were 32,929 marijuana patient cardholders, three times the number of cardholders in April 2006 (10,775) (Figure 7, page 11). The number of new and renewal applications received between April 1, 2009 and March 31, 2010 was 34,959 with 1,143 applications denied 30 (Appendix A). Nearly 70 percent of medical marijuana cardholders in Oregon are reported in the HIDTA region (Figure 8).

14 4 of 72 9/15/2010 3:23 PM The increasing number of cardholders, coupled with the large volume of plants cultivated, the difficulties associated with investigating compliance, and the attraction of selling surplus amounts on the black market for high profit and little risk has encouraged extensive abuse in the HIDTA region and statewide. For example, in November 2009, an eight-month investigation into an illegal marijuana growing operation involving a registered grower under the OMMP led to the discovery of four indoor growing operations in Eugene and West Linn, Oregon. Investigators from the Lane County Interagency Narcotics Enforcement Team, Drug Enforcement Administration, Oregon State Police, and the Lane County Sheriff s Office conducted search warrants on three uninhabited houses in Eugene, Oregon and a house in West Linn, seizing 1,276 marijuana plants, three firearms, and a large amount of growing equipment. The registered grower involved in the case told investigators the operation produced 13 pounds of usable marijuana every 30 days which sold for $3,200 per pound 31. Violent Home Invasion Robbery Ends in Lengthy Prison Sentence In August 2008, three perpetrators committed a home invasion robbery at a residence of a medical marijuana cardholder in Banks, Oregon. Armed with a handgun, the robbers tied up the owner and three guests, and stole marijuana and roughly $2,000 in cash but became angry when the victims didn't produce more money. One victim was repeatedly kicked in the face causing multiple facial fractures, another victim was choked until he lost consciousness, and a third victim was sexually assaulted. Washington County Sheriff s Office investigators later determined that marijuana was the motivation for the robbery. Two perpetrators were sentenced to 10 years in prison and the third was found guilty of 13 crimes and sentenced to 39 years in prison. Source: District Attorney Department, Washington County, Oregon, 10/23/2009. Nearly one-half of law enforcement agencies surveyed in Oregon reported that the number of out-of-compliance medical marijuana grows identified increased in 2009 compared to previous years 32. As medical marijuana cultivation has become more prevalent in the state, grow sites have become lucrative targets for theft and violence. Oregon law enforcement reports caregivers are increasingly arming themselves to defend medical marijuana grow sites from theft and home invasion robberies Heroin Heroin use rates have fluctuated in the HIDTA region in recent years. Analysis of treatment admission data reveal that the number of treatment admissions related to heroin decreased 17 percent from 2003 to 2007, but increased 7 percent from 2007 to 2009 (Figure 2, page 7) 34. According to AMHD, 5,634 adults admitted to treatment facilities in the HIDTA region reported heroin as their primary drug of abuse in 2009 compared with 5,537 in The number of heroin fatalities has also fluctuated in the last decade (Figure 4, page 8). With the exception of calendar years 2005 and 2006 g, heroin has been the leading cause of drug-related deaths in the state. Fatalities from heroin use increased seven percent from 2008 (119) to 2009 (127), resulting in the highest number of fatalities since 2000 (131) 36. Federal sources indicate that estimated heroin production in Mexico increased 375 percent between 2005 and 2008, supportive of greater availability in U.S. markets 37. Nearly three-quarters (74%) of law enforcement agencies surveyed reported a moderate or high level of availability of heroin in their area during 2009, with four law enforcement agencies in Lane, Marion, Multnomah, and Washington counties reporting heroin as

15 5 of 72 9/15/2010 3:23 PM the greatest drug threat in their jurisdictions h,38. Additionally, HIDTA counties located along the I-5 corridor, such as Multnomah, Clackamas, Washington, Marion, Lane, Douglas, and Jackson, reported an increase in heroin-related arrests in Anecdotal reporting from local law enforcement indicates that brown-powdered heroin is increasingly available in the state, particularly in the Portland Metro region, as well as Marion, Deschutes, Lane, Douglas and Jackson counties. Brown powdered heroin can be more potent than more commonly seized black tar heroin. This form is sometimes mixed with highly potent Asian powdered heroin, laced with fentanyl (a strong pharmaceutical opiate), or may be combined with black tar heroin as a way to increase potency of the drug. Some law enforcement officials report heroin use in their area has increased partly because users of prescription opiates, such as oxycodone, have switched to heroin because it is easier to obtain, cheaper, and provides a more intense high than diverted prescription opiates 40,41. g Heroin fatalities matched methamphetamine deaths in 2005; in 2006, methamphetamine deaths surpassed heroin deaths. h The four agencies include the Regional Organized Crime Narcotics Task Force (ROCN), Forest Grove Police Department, Eugene Police Department, and the Oregon State Police. 4. Prescription Drug Use Prescription drug abuse is growing at a rapid rate in the United States 42. Nationally, hospitalizations for poisoning by prescription opioids, sedatives and tranquilizers increased 65 percent from 1999 to While still low compared to major illicit drugs, such as methamphetamine, marijuana and heroin, treatment admissions for non-prescribed use of prescription drugs (including non-prescribed tranquilizers, opiates, and sedatives) increased more than 350 percent in Oregon between 2000 and 2009, surpassing admissions for cocaine as individuals' reported primary drug of abuse in (Figure 9). Recent data from AMHD reveals treatment admissions for prescription drug abuse increased 67 percent between 2005 and 2009 in the HIDTA region 45 (Figure 2, page 7). Additionally, over 80 percent of Oregon law enforcement agencies surveyed in 2010 reported a high level of controlled prescription drugs available in their area 46.

16 6 of 72 9/15/2010 3:23 PM The steady rise in prescription drug abuse is likely due to a confluence of factors. For example, controlled prescription drugs are aggressively marketed and advertised by the pharmaceutical industry, liberally prescribed by physicians for a growing number of conditions, and widely available for purchase on the Internet; factors which have likely contributed to the growing availability of prescription drugs for non-medical use 47. Results from the most recent National Survey on Drug Use and Health show that the majority of people surveyed acquired pain relievers they used non-medically in the last year from a friend or relative for free (56%) 48. Furthermore, misuse of prescription drugs is often perceived by users as a safe alternative to illicit drugs. For a growing number of students and professionals, non-medical use of prescription drugs has become a socially acceptable way to alleviate stress and enhance performance. According to a University of Michigan survey of college students in 2008, 90 percent of respondents reported enhancement in studying as the reason they most often took stimulant drugs such as Ritalin, Adderall, and Concerta for non-medical purposes 49. Evidence suggests that non-medical use of prescription drugs may lead to use of illicit drugs such as heroin or cocaine 50. Recent data shows that while a majority of individuals aged 12 and older reported initiating drug use with marijuana (56%), nearly one-third (31%) of individuals specified using psychotherapeutics (pain relievers, tranquilizers, stimulants, sedatives) when initiating illicit drug use in According to analysis of survey data by the Office of Applied Studies, college students who have used the ADHD i drug, Adderall, non-medically in the past year are more likely to be polydrug users than their non-adderall using counterparts; nearly three times more likely to use marijuana, five times more likely to use pain relievers non-medically, eight times more likely to use cocaine, and eight times more likely to use tranquilizers non-medically 52. Furthermore, anecdotal reporting by Oregon law enforcement suggests that users of oxycodone, particularly younger users, have switched to heroin because it is cheaper and more potent 53. Drug overdoses comprise 95 percent of unintentional poisoning deaths in the U.S.; in recent years, prescription drug overdoses, particularly methadone, have overtaken cocaine and heroin overdoses as the leading cause of poisoning deaths 54. Nationally, the number of methadone prescriptions dispensed increased by nearly 700 percent between 1998 and A recent evaluation of methadone fatalities by the Government Accountability Office, suggests that methadone s growing use for pain management has increased its availability, leading to a rise in associated overdose deaths nationwide 56. In Oregon, the number of individuals admitted to treatment facilities for methadone obtained without a legal prescription rose 3 percent from 2008 (375) to 2009 (385), but was over five times the number admitted in 2003 (71) Cocaine Cocaine continues to be used throughout the HIDTA region; crack cocaine is available, but the powder form is more prevalent.

17 7 of 72 9/15/2010 3:23 PM Availability of cocaine in many U.S. markets has fluctuated since 2006 due largely to factors such as decreased production in Columbia, cartel violence, disruptions in supply, and increased law enforcement efforts in Mexico 58. However, availability of the drug has reportedly since returned to previous levels in some regional markets, including Oregon 59. Nearly three-quarters of Oregon law enforcement agencies surveyed in 2010 reported a moderate or high level of powder cocaine available in their area 60. Additionally, cocaine continues to be a serious threat in the Portland area and is strongly linked to violent crimes such as homicide, rape and robbery. 61 Some indicators suggest that cocaine addiction levels may be declining in Oregon. Data from Quest Diagnostics indicates the percentage of workers and job seekers who tested positive for recent cocaine use dropped 57 percent nationally between 2005 and mid And, treatment admissions for cocaine have generally decreased in Oregon since Recent data reveals that the downward trend continued in 2009, with 1,167 individuals admitted to treatment facilities in the HIDTA region in 2009 who reported cocaine as their primary drug of abuse, an 11 percent decrease from 1,307 admissions in (Figure 2, p. 7). In addition, cocaine-related deaths have historically fluctuated; but decreased by half in Oregon since The Oregon State Medical Examiner Division reported the number of deaths dropped 37 percent from 2008 (51) to 2009 (32), the fewest number recorded since (Figure 4, page 8). i Attention Deficit Hyperactivity Disorder. 6. Other Drugs "Designer drugs or club drugs" are general terms for synthetic drugs which have become popular with teenagers and young adults who frequent nightclubs and raves and are primarily found in urban areas. MDMA (3,4-methylenedioxymethamphetamine), GHB (gamma-hydroxybutyric acid), LSD (lysergic acid diethylamide), and ketamine (ketamine hydrochloride), are generally used by teenagers and young adults in the HIDTA region. Use of MDMA typically occurs at social venues such as raves, bars, nightclubs, and private parties in urban areas and on college campuses. Nearly half of Oregon law enforcement agencies surveyed in 2010 reported a moderate level of MDMA available in their area 66. According the NDIC, Asian DTOs have increased production of MDMA in Canada leading to increased distribution of the drug into the United States 67. Seizures of MDMA along the U.S.-Canada border increased substantially (156%) from 2007 to 2008, with more MDMA seized at the Northern Border in 2008 than any year since , although federal sources report availability may have stabilized 69. MDMA is commonly purchased with other designer drugs, such as ketamine and Foxy Methoxy, at raves. Foxy Methoxy (5-methoxy-N, N-diisopropyltryptamine (5-MeO-DIPT)) is sometimes offered with MDMA, LSD, and psilocybin (hallucinogenic mushrooms) and may be combined with other core drugs (cocaine, heroin, marijuana, and methamphetamine). Law enforcement reporting indicates adulteration of MDMA tablets with addictive drugs, such as methamphetamine, is a growing threat 70.

18 8 of 72 9/15/2010 3:23 PM Psilocybin, the psychoactive ingredient found in certain mushrooms, is another drug that is available and used in the HIDTA region. Psilocybin mushrooms grow wild in Oregon and are also produced indoors for illicit use in the state. Psilocybin mushrooms are often covered with chocolate to mask their bitter flavor and to disguise the mushrooms as candy. The psilocybin produced in the HIDTA region is shipped to destinations throughout the state and worldwide. High school and college students are the most common users of the drug; with use of the drug normally occurring at raves in the HIDTA region and throughout Oregon. III. PRODUCTION The production of illicit drugs, including methamphetamine, marijuana, GHB, LSD, and psilocybin, occur in the Oregon HIDTA region. The primary drugs produced, distributed, and exported to other states are high-quality marijuana and to a much lesser extent, methamphetamine, designer drugs and psilocybin. The HIDTA counties contain many remote areas, including dense forests and mountainous regions, which allow criminal groups to conduct their activities with little fear of detection. Marijuana Marijuana available in the HIDTA counties is either produced locally or is transported from Canada, Mexico, or other states. Locallyproduced marijuana is grown both indoors and outdoors in the state. Oregon is one of seven primary cannabis cultivation and marijuana production states which consistently sustain high levels of outdoor cannabis cultivation 71,j. Oregon s temperate climate, excellent soil, and extensive remote rural and forested areas are valuable natural resources which are exploited for growing marijuana outdoors in the HIDTA region. Due to weather patterns, cannabis is grown outdoors primarily during the spring and summer months. Cultivations in Oregon range from simple dirt gardens to large-scale irrigated gardens. These types of grow operations are controlled by Mexican DTOs as well as Caucasian independent growers; however, Mexican DTOs generally have been identified as operating the larger grows. Law enforcement officers have encountered outdoor cannabis grow sites on public lands in Oregon for many years. However, officials report that the size of outdoor cannabis cultivation sites discovered on public lands in Oregon has increased over the past several years (Figure 10). Previously, cannabis grows of 200 to 300 plants were considered large grows on public lands in the state; however, grows consisting of several thousand plants now are routinely discovered. Reporting indicates that one reason for the increase is the involvement of Mexican criminal groups in these operations.

19 9 of 72 9/15/2010 3:23 PM Since 2000, sophisticated, large-scale outdoor marijuana grows operated by Mexican DTOs have been discovered to a greater extent. These grows are typically set up in remote areas of the state and produce tens of thousands of plants per year. Harvested plants are distributed both within the state and j The other six states are California, Hawaii, Kentucky, Tennessee, Washington, and West Virginia. 610 Hawthorne Avenue, SE, Suite 120, Salem, Oregon Telephone: (503) Fax: (503) transported nationally. Law enforcement officials report that some members of Mexican DTOs and criminal groups exploit tribal lands to establish marijuana cultivation sites and drug distribution networks. Between 2007 and 2009, the Warm Springs Indian Reservation seized over 32,000 marijuana plants. Mexican DTOs generally recruit workers, often illegal aliens, to establish and maintain the cannabis grows. As law enforcement pressure and eradication have intensified, evidence of weapons and counter-surveillance at grow sites has become more prevalent. An associated cost documented by law enforcement is the severe damage to the environment and natural resources caused by large-scale marijuana grows. Gardens are typically constructed with intricate watering systems that block and redirect water from a local stream or creek through irrigation tubing to

20 0 of 72 9/15/2010 3:23 PM supply water to thousands of marijuana plants. An average-sized marijuana garden of 1,000 plants may require up to 5,000 gallons of diverted water on a daily basis. In addition, workers who maintain the gardens pollute waterways with detergents, damage trees, and kill local wildlife to protect plants. Workers typically use commercial-grade fertilizers and pesticides many of which are banned in the United States because of their toxic ingredients to sustain the plants. When discarded in the forest by growers, these chemicals can leech into the ground, resulting in toxic levels of pollutants in the soil and streams. HIDTA counties host a significant number of indoor grows. These grows, some of which utilize hydroponic methods and offer strict environmental controls, are capable of producing high-quality marijuana that is in demand and distributed locally, nationally, and internationally. The NDIC reports that indoor cannabis cultivation is most prevalent in western states such as Oregon, Washington and California 72. A continuing and growing threat is the spread of sophisticated indoor marijuana operations located in upscale suburban neighborhoods and controlled by Asian organized crime. According to the Drug Enforcement Administration (DEA), Vietnamese organized crime groups have converted houses to grow B.C. Bud in British Columbia, but have recently moved operations south into the United States in order to avoid increased border enforcement 73. In 2008, more than 17,000 plants were seized as a result of an investigation of Vietnamese Nationals in the Portland Metro area. Recent federal reporting indicates that Asian DTOs and criminal groups have increased indoor grow operations throughout the United States; some Asian DTOs operating in western states such as Oregon and Washington are linked to groups in other states, suggesting a high level of coordination among some groups in marijuana production operations 74. In 2010, the Clackamas County Interagency Task Force (CCITF) investigated and dismantled two indoor marijuana grows in homes connected to an Asian family. The investigation resulted in the arrest of three suspects and the seizure of approximately 200 plants, $10,000 in currency, and a firearm. The number of marijuana plants seized from indoor and outdoor grow sites in the HIDTA region in 2009 (Figure 11, page 19) was more than twice the amount seized in 2008 (Appendix B). Of the 230,011 plants seized in Oregon in 2009, 37 percent (84,426) of the plants were seized in the HIDTA region. The plants seized during 2009 in the HIDTA region consisted of 14,759 indoor plants and 69,667 outdoor plants. The highest number of indoor plants was seized from Lane County (8,349), followed by Multnomah (4,167), Clackamas (773), Deschutes (624), Douglas (618), Marion (113), Washington (107), and Jackson (8). Umatilla County and Warm Springs Indian Reservation did not report indoor plant seizures in The highest number of outdoor plants was seized from Jackson County (26,872), followed by Douglas (21,874), Clackamas (7,606), Umatilla (7,365), Washington (2,750), Warm Springs Indian Reservation (1,630), Lane (780), Marion (477), Deschutes (185), and Multnomah (128) 75 (Appendix B). The large amount of outdoor marijuana seized in the state since 2005 indicates marked expansion by drug trafficking organizations. The number of plants seized from outdoor cultivation operations in Oregon in 2009 (210,148) was more than five times the number seized in 2005 (40,015). The rise in seizures in the last five years can be primarily attributed to the emergence of large grows operated by Mexican DTOs, specialized training for law enforcement and the addition of committed resources made possible by the National Marijuana Initiative which facilitated more effective investigations. In addition, adoption of proactive efforts can have a valuable, deterrent effect. For example, the approach by the U.S. Attorney s Office for the District of Oregon of targeting large-scale grow operations and partnering with state and local law enforcement agencies in the early stages of investigations resulted in the discovery of numerous cultivation sites and the federal prosecution of approximately 40 DTO members and associates in The number of outdoor seizures decreased in 2008 possibly as a result of several contributing factors, such as poor weather conditions which caused a late growing season, limitations on state and local law enforcement resources, successful prosecution efforts, and alteration of DTO grow operations making grow sites more difficult to detect.

21 1 of 72 9/15/2010 3:23 PM Similar to outdoor marijuana eradication trends, seizures from illegal indoor grow operations increased substantially (162%) in Oregon between 2005 and The increase may be due to greater involvement by law enforcement in targeting members of Asian organized crime groups who set up large, sophisticated indoor operations in the state, a resource shift by drug task forces in investigating indoor grow operations, and interdictions leading to the discovery of grows operating under the guise of the medical marijuana program. Methamphetamine Precursor chemical controls at the state and federal level along with sustained law enforcement pressure have contributed to a dramatic decline in reported methamphetamine lab seizures in Oregon.

22 2 of 72 9/15/2010 3:23 PM Oregon legislation restricting the availability of pseudoephedrine appears to have reduced the number of methamphetamine labs reported to be operating in the state. Law enforcement authorities seized 13 methamphetamine laboratories in the state in 2009, a 97 percent decrease from the 448 seized in (Figure 12; Appendix C). The number of reported precursor purchases in Oregon declined 7 percent in the last year and dropped 14 percent from 2005 to While calendar year 2009 data indicates low levels of domestic production statewide, Oregon law enforcement agencies report that a high level of crystal methamphetamine continues to be available, most of which is imported as finished product from outside the state and from Mexico in the form of crystal methamphetamine or ice. 78,79. Federal sources suggest that despite recent ephedrine and pseudoephedrine import restrictions implemented by the Government of Mexico k, Mexican drug cartels have adapted to the new regulations by altering operations. Tighter regulations appear to have contributed to a temporary decline in methamphetamine production in Mexico during 2007 and 2008, which reduced flow of the drug into the United States 80. However, methamphetamine seizures rose dramatically at the Southwest Border in 2009, reaching the highest level since 2005 and surpassing the previous high annual seizure total by nearly 20 percent 81. The substantial increase in border seizures likely reflects renewed capability of Mexican DTOs to sustain large-scale methamphetamine production. Law enforcement reporting suggests that Mexican criminal groups are circumventing tighter precursor rules by establishing new smuggling routes for restricted chemicals, importing nonrestricted chemical derivatives in place of precursor chemicals, and increasing nonephedrine-based production, such as the phenyl-2-propanone method 82. Mexican DTOs have countered stronger methamphetamine regulations by shifting trafficking routes into countries which lack the adequate enforcement and forensics infrastructure to detect movement of both precursor chemicals and finished products 83. Large shipments of ephedrine and pseudoephedrine are frequently seized at Mexico s seaports and airports from source and transit countries such as China and India 84. Recent reporting indicates Mexican DTOs are gaining a foothold in k The Government of Mexico has implemented progressively tighter restrictions on ephedrine and pseudoephedrine imports since 2005, banning use of the chemicals in Central and South America, using countries such as Guatemala, Honduras, and Argentina as source and transshipment locations for ephedrine and

23 3 of 72 9/15/2010 3:23 PM pseudoephedrine shipments destined for methamphetamine labs in Mexico and labs tied to Mexican DTOs operating in South America 85. Additionally, some Mexican DTOs have reportedly transferred production operations into the United States, particularly California, as a way to avoid increased scrutiny and border conflict, as well as exploit opportunities to acquire precursors through pseudoephedrine smurfing operations l,86. Increased prevalence of laboratories using nonephedrine-based production methods has been reported, as well. Recent large seizures of phenylacetic acid, a precursor used in the phenyl-2-propanone (P2P) method, suggest that Mexican DTOs are using the P2P method to a greater extent as a way to sustain production. Phenylacetic acid is legally imported into Mexico and regulated by Mexico s Department of Health 87. Price reporting indicates that crystal meth continues to be sold at higher prices than in prior 88,89 years. Factors contributing to price increases likely include greater enforcement in Mexico, continued violence among Mexican criminal groups, declining U.S. domestic methamphetamine production, and tighter import controls on precursor chemicals in the United States and Mexico. Additionally, Canada-based criminal groups continue to expand their involvement in methamphetamine production and distribution. Federal reporting indicates that since 2006, Asian DTOs operating in Canada and outlaw motorcycle gangs have significantly increased the amount of methamphetamine they distribute in the United States 90. Furthermore, international reporting shows an increase in the illicit manufacture of precursor chemicals and amphetamine-type substances in countries such as China, Indonesia and the Philippines 91. A report published by the Royal Canadian Mounted Police in suggested that Indo-Canadian crime groups are exerting increasing control over ephedrine smuggling into Canada from India for purposes of methamphetamine production. The groups collaborate, acting as brokers for organized crime networks in China that have connections to methamphetamine labs in British Columbia and Ontario. Although local production has dropped dramatically in recent years, small quantities of methamphetamine are still produced in urban areas and on public lands within the HIDTA counties. Criminal organizations and independent producers have exploited remote areas for methamphetamine production in the past. Methamphetamine cooks may revert to older methods of production, such as the phenyl-2-propanone (P2P) method, which use ingredients that are more readily available. In April 2008, sludge testing positive for P2P was seized from a shipment of methamphetamine being transported by a Mexican DTO from Central California through Oregon 93. In December 2008, the Regional Organized Crime Narcotics Task Force (ROCN) seized a non-operational P2P methamphetamine lab at a residence in Portland. However, to date, there is little evidence that the P2P method is employed to any large extent in Oregon. Most methamphetamine produced in the state is consumed locally. Locally-produced methamphetamine is manufactured in small-scale laboratories. Slightly over one-half of the methamphetamine laboratories seized in Oregon are found in the HIDTA region with the largest number of labs seized in Umatilla County (5), followed by Multnomah (2) and Washington (1) counties. l Smurfing is a method used by some methamphetamine producers and traffickers to acquire large amounts of regulated precursor ingredients through purchase in amounts at or below legal thresholds from multiple retail locations. Offenders frequently enlist the cooperation of several associates to increase the speed at which chemicals are acquired. Clackamas, Deschutes, Douglas, Jackson, Lane, and Marion counties reported no seizures in (Appendix C).

24 4 of 72 9/15/2010 3:23 PM Designer Drugs Designer drugs, including MDMA, GHB, ketamine, and LSD are obtained from a variety of sources. MDMA available in the HIDTA counties is increasingly trafficked from Canada, as well as from Europe 95. Law enforcement reporting suggests that MDMA is not currently produced in Oregon; however, clandestine laboratories have been found elsewhere in the United States, including California, and may indicate a trend toward producing the drug locally. Ketamine is primarily transported from Mexico to Oregon. GHB, LSD, and PCP (phencyclidine) are generally transported from California to the state, but GHB and LSD have been produced locally as laboratories have been seized in HIDTA counties in the past. Psilocybin Psilocybin is also available and used in the HIDTA region. Psilocybin grows wild in cow pastures in the state and is also cultivated indoors. These indoor psilocybin grow sites are located in the southern areas of the HIDTA region, primarily in Jackson County. The psilocybin cultivated in the state is consumed locally and is also shipped to other parts of the state and worldwide. IV. TRANSPORTATION Primary Corridors (National Drug Intelligence Center) Cocaine, heroin, marijuana, methamphetamine, and other dangerous drugs (ODDs) including MDMA, as well as illicit drug proceeds, are transported through each of the corridors to varying degrees. With few exceptions, drugs generally flow north from the Southwest Border and the southeastern United States, while illicit drug currency flows in the reverse direction. Cocaine and marijuana shipments range from small shipments transported in private vehicles to multi-thousandkilogram shipments transported in tractor-trailers. Heroin and methamphetamine shipments are smaller, ranging from less than a kilogram to multiple kilograms and are typically transported via private vehicles. Shipments of ODDs range from dozens to thousands of dosage units and are also transported chiefly via private vehicles. Currency shipments range from nominal amounts to several million dollars. Both private and commercial vehicles are used to transport currency. Corridor 5 A West Coast corridor in which Interstate-5 (I-5) is the primary route, Corridor 5 (Figure 13, page 23) extends from the California-Mexico border to the Washington-Canada border. Similar to I-95, drugs are transported in both directions on I-5, but primarily south to north. Interstate 5 intersects with I8, I-10, and I-80. Significant quantities of drugs are transported north on I-5 from Mexico and California to market areas in the Northwest and in Canada, while marijuana and, to a lesser extent, MDMA are transported south on I-5 from Canada and the Northwest. Primary market areas served by this corridor are San Diego, Los Angeles, San Francisco, and Seattle.

25 5 of 72 9/15/2010 3:23 PM Oregon s geographical position offers a direct route between Canada and Mexico via Interstate 5, which traverses the majority of the HIDTA region. Highways 97 and 395, which are located in the eastern section of the state, also provide alternative north/south routes through the state. A series of east/west roadways, such as Interstate 84 and Highways 26 and 20, connect these major north/south routes providing additional opportunities for drug transportation into and through the state. Oregon s commercial airports, including the Portland International Airport, numerous private airfields and seaports, including the Port of Portland, are also easily exploitable by drug traffickers. 1. Airways Air smuggling of illicit drugs is a threat to the Oregon HIDTA region and may be an even greater threat than law enforcement is aware. Very little enforcement and interdiction efforts take place due to limited law enforcement resources. With more than 400 known airfields, including airports, heliports, and other landing areas in Oregon, 55 percent of which are privately used, the air threat to the HIDTA counties is considerable 96. The Portland International Airport (PDX), located in Multnomah County, is the largest commercial airport in Oregon and, in 2009, served 12.9 million passengers and 190,116 tons of goods. PDX is a hub for passenger transportation but is also a transshipment point for narcotics smuggling, both domestically and internationally. Figure 14. Known Airfields in Oregon

26 6 of 72 9/15/2010 3:23 PM The second largest airport in Oregon is the Eugene Airport located in the City of Eugene. The airport is situated along the I-5 corridor and offers over 50 passenger flights a day to and from Portland, Denver, Las Vegas, Los Angeles, Oakland, Phoenix, Redmond, Salt Lake City, San Francisco, and Seattle. In addition, the airport also serves private, military and commercial cargo flights. Other major airports in Oregon include the Rogue Valley International-Medford airport located in Medford in Southern Oregon and the Roberts Field Airport located in Redmond in Central Oregon. 2. Land/Highways

27 7 of 72 9/15/2010 3:23 PM The smuggling of illicit drugs by land is the preferred trafficking method in Oregon. The Oregon HIDTA contains a network of interstates, highways, secondary roads, and railroads which are exploited by drug traffickers to transport illicit drugs. These routes provide easy access to major population centers, medium-size cities, and smaller communities in the state. Drug traffickers use the well-developed highway infrastructure in the HIDTA counties to transport drugs by private and commercial vehicle, including personal vehicles, commercial trucks, buses, and trains, into and through Oregon from and to, other drug markets. Mexican criminal groups are the primary drug traffickers who utilize the state s highway system to transport and distribute large wholesale quantities of illicit drugs. These groups predominantly use Interstate 5 as their main trafficking route; however, other highways, such as Highway 97 and U.S. coastal highway 101, are used as alternative north-south drug trafficking routes. Interstate 5 traverses seven of the nine HIDTA counties (Clackamas, Douglas, Jackson, Lane, Marion, Multnomah and Washington). This is the major transportation route for traffickers in Oregon as the I-5 highway corridor extends from Vancouver, British Colombia, through Washington, Oregon and California and continues all the way to Tijuana, Mexico. In 2003, the NDIC identified Interstate-5 as one of five major narcotics trafficking corridors in the United States. The fact that most of Oregon s major cities are located along the I-5 corridor provides a market incentive and a wealth of opportunities for smuggling illegal drugs into and out of the state. Highway 97 runs north and south through Deschutes County, and is considered by law enforcement to be a widely used route for trafficking organizations. This route provides direct access to California, Central Washington and the Yakima Valley area, and Canada through Washington. U.S. Coastal Highway 101 runs north and south through Lane and Douglas counties and is considered an alternative route for smuggling drugs through the state. Highway 20 extends from the Oregon Coast through Central Oregon and into Idaho. From I-5, this highway cuts east through Deschutes County and is an excellent alternative route to the more commonly patrolled Interstate 84 for traffickers bound for Idaho and eastern Washington. Drugs also are transported into and through Oregon by rail. The state has 19 freight railroads which operate on nearly 2,400 miles of rail. In 2007, an estimated 67.8 million tons of freight was moved on Oregon rail. In addition to rail freight, passenger trains also travel through Oregon on a daily basis with individuals traveling as far north as Canada, as far south as Los Angeles, and as far east as Chicago and New York. In 2009 the HIDTA Interdiction Team (HIT) seized 67 pounds of marijuana from two suspicious travelers on Amtrak leaving Portland, Oregon for Minneapolis, Minnesota. Further investigation revealed that the source of the marijuana was a local organization using the medical marijuana program as a guise for illicit marijuana operations. 3. Sea/Ports of Entry Illicit drugs may also be smuggled into Oregon using maritime conveyances. There has been no current, credible intelligence regarding the use of maritime vessels to transport drugs into Oregon, so the threat posed by maritime smuggling is unknown. However, the smuggling and transport of illicit drugs via commercial and private maritime conveyances remains a significant vulnerability to Oregon due not only to the high volume of cargo transiting the state's seaports, but the countless opportunities for illicit transport that exist along Oregon's abundant waterways.

28 8 of 72 9/15/2010 3:23 PM The Oregon Coast covers 296 miles of the United States border running between the states of California and Washington. In addition to the Oregon Coast, the state is also composed of 2,383 square miles of rivers, lakes, and estuaries. The Columbia River, a major shipping lane, has 23 ports and flows for approximately 260 miles along the border between Oregon and Washington. The port ranks twenty-sixth in the United States in total tonnage, with 10.3 million short tons of cargo being processed through the port s marine terminals in In addition, the Port of Portland is the largest wheat export port, the third largest volume auto import port, and the sixteenth largest container port in the United States. Intelligence regarding the use of maritime vessels to transport drugs into Oregon is limited, however, and the threat posed by maritime smuggling is undoubtedly larger than law enforcement is aware. 4. Other Package delivery services provide an additional method for drug traffickers to smuggle illicit drugs into Oregon. Criminal groups have transported illicit drugs, including methamphetamine, cocaine, MDMA, and psilocybin into the Oregon HIDTA counties using these services. Marijuana, methamphetamine, heroin, cocaine, and designer drugs, as well as illicit drug proceeds, are transported into the state by a variety of methods. Marijuana Traffickers use a variety of routes and methods to transport marijuana into Oregon (Figure 15). Locally-produced marijuana is transported throughout the state via the state s highway system in private and commercial vehicles. BC Bud normally originates in British Columbia and is smuggled across the U.S.-Canada border via Canada Route 99 U.S. Interstate 5 in commercial trucks, private vehicles, buses, boats, or aircraft or on foot - often hidden in backpacks or duffel bags. BC Bud sometimes is transported to Washington, Oregon, or California and exchanged for cocaine, which is then transported north into Canada for distribution. Mexican marijuana is transported from southwestern states and southern California to Oregon primarily via Interstate 5 or U.S. Coastal Highway 101 in private and commercial vehicles. For example, an investigation initiated in Lane County involved a DTO responsible for large shipments of marijuana and psilocybin mushrooms from Eugene, Oregon to locations across the United States. The investigation was carried out jointly between the Eugene Police Department, DEA, and the Internal Revenue Service, and also involved the DEA Kansas City District Office. Investigation revealed that the DTO regularly shipped 10 to 25 kilograms of marijuana and psilocybin mushrooms to locations in Missouri, Georgia, North Carolina, South Carolina, and New York. In November 2008, law enforcement investigators conducted seven search warrants which led to the seizure of 163 marijuana plants, various marijuana grow equipment and U.S. currency. The investigation culminated in five arrests, the seizure of 163 marijuana plants and 10 pounds of psilocybin mushrooms, $56,852 in U.S. currency, and four residences worth $1.2 million. Figure 15

29 9 of 72 9/15/2010 3:23 PM Source: Oregon State Police seizures reported to the Oregon HIDTA as part of the Domestic Highway Enforcement Strategy. Note: Reporting is required when a marijuana seizure is at or above 1 pound or when the investigating officer believes the seizure is related to a DTO. Methamphetamine Methamphetamine not manufactured locally is typically shipped from Mexico via California or produced in California and the Southwest states. Transportation of the drug into the Oregon HIDTA counties occurs via private and commercial vehicle, bus, train, or package delivery services. Methamphetamine is also smuggled from other areas, but to a lesser extent. According to law enforcement in Bend, DTOs based in central Washington and southwest Idaho also supply methamphetamine in their jurisdictions (Figure 16, page 28). Figure 16

30 0 of 72 9/15/2010 3:23 PM Source: Oregon State Police seizures reported to the Oregon HIDTA as part of the Domestic Highway Enforcement Strategy. Note: Reporting is required when a methamphetamine seizure is at or above 2 ounces or when the investigating officer believes the seizure is related to a DTO. Heroin Law enforcement in some regions has reported a substantial increase in the amount of heroin trafficked, with larger seizures in multi-pound quantities. Mexican DTOs dominate the transportation of Mexican black tar heroin and Mexican brown powdered heroin into and throughout Oregon. Mexican local independent dealers also transport Mexican black tar heroin and Mexican brown powdered heroin into the state, but to a

31 1 of 72 9/15/2010 3:23 PM lesser extent. These groups and independent dealers transport the drug to the state from Mexico, California, and southwestern states primarily via private and commercial vehicles, typically using Interstate 5, U.S. Highways 101 or 97. Mexican DTOs and independent dealers also transport Mexican black tar heroin to Oregon by private and commercial vehicles, buses, mail services, trains, and commercial aircraft. These groups and independent dealers often obtain heroin from relatives in California and Mexico who are part of their criminal group. Some Mexican DTOs and independent dealers transport heroin into Oregon via Interstate 82 from the Tri-Cities area (Kennewick, Pasco, and Richland) of Washington, but this route is used to a lesser extent than other drug transportation routes. Mexican DTOs also transport heroin from California through Oregon to Washington and Idaho (Figure 17). Figure 17

32 2 of 72 9/15/2010 3:23 PM Source: Oregon State Police seizures reported to the Oregon HIDTA as part of the Domestic Highway Enforcement Strategy. Note: Reporting is required when a heroin seizure is at or above 1 ounce or when the investigating officer believes the seizure is related to a DTO. Cocaine Mexican DTOs dominate the transportation of powdered cocaine into and throughout the Oregon HIDTA region. These groups transport the drug from Mexico, California, and southwestern states to Oregon. Most cocaine available in the HIDTA region is transported overland from Mexico, California, and southwestern states by private and commercial vehicles via Interstates 5 and 84 and U.S. Highways 20, 97, and 101. DTOs also transport cocaine to HIDTA counties using couriers on commercial airlines and trains, maritime shipments, and commercial package delivery services. Transportation methods are often varied to counteract interdiction efforts by changing routes, renting different vehicles, and hiring a variety of people to serve as couriers. African-American DTOs, Mexican DTOs, and street gangs transport crack cocaine into and through the HIDTA region. Crack cocaine which is not converted from powdered cocaine at or near distribution points in Oregon is often transported from California (Figure 18). Figure 18

33 3 of 72 9/15/2010 3:23 PM Note: Reporting is required when a cocaine seizure is at or above 2 ounces or when the investigating officer believes the seizure is related to a DTO. In early 2008, the Marion County HIDTA/DEA Task Force completed a Title III investigation of a Mexican National DTO cell based in Oregon involved in transporting large loads of cocaine and methamphetamine from Mexico. Investigators identified a Mexican National DTO member operating out of Panama who conspired with three Salem area targets to import loads of 500 to 1,000 kilograms of cocaine from Columbia into Mexico for eventual distribution in Oregon, California, Washington and the East Coast of the United States. The investigation resulted in the arrest of 31 suspects and the seizure of 22 kilograms of cocaine, 4 pounds of methamphetamine, 25 firearms and over $55,000 in cash. In December 2009, the Westside Interagency Narcotics Team (WIN) conducted a traffic stop on two vehicles in route on Interstate 5 near Tualatin, Oregon. Search warrants were executed which revealed a pound of methamphetamine valued at $25,000 and a half pound of cocaine valued at $8,000 hidden in the vehicles. The individuals charged were under investigation by the WIN team for several months and were suspected to be part of a drug trafficking organization that was transporting methamphetamine and cocaine from California to Oregon. Designer and Other Drugs MDMA is transported into the HIDTA region from Canada, Europe, and other areas of the United States. The drug is generally transported by courier via commercial airlines; however, private planes, freight shipments, and package delivery services are also used to smuggle the drug. Federal reporting indicates an apparent rise in the flow of MDMA into the United States largely due to increased production of the drug in Canada. Between 2003 and 2007, MDMA seizures at the U.S.-Canada border increased 900 percent, with most of the seizures occurring along entry points into Washington state 97. In 2008, the Marion County HIDTA/DEA Task Force investigated a Mexican National DTO involved in importing MDMA from Canada for distribution in Oregon and California. The investigation resulted in a record seizure of 143 pounds of ecstasy and three pounds of pseudoephedrine from a vehicle traveling on I-5 near Wilsonville, Oregon 98. Other designer drugs are produced in Oregon or are transported from other areas. Ketamine is generally transported from Mexico by Mexican DTOs, while GHB and LSD are produced in the state, or domestically, and transported to the HIDTA region. V. DISTRIBUTION Distribution Methods Drug distribution occurs in the Oregon HIDTA region at open-air markets, restaurants and nightclubs, and through online connections and

34 4 of 72 9/15/2010 3:23 PM social networking sites. Open-air drug markets exist in the Oregon HIDTA region. In Portland, open-air drug markets exist along the MAX light-rail line from Burnside Street along the Burnside Bridge to the North Park blocks, and includes the Old Town section north of Burnside. Marijuana, powdered cocaine, crack cocaine, and heroin are readily available in these areas. In Marion County, three open-air markets exist: Marion Square Park, the Transit Mall area, and downtown Woodburn. Cocaine, heroin, marijuana, and methamphetamine can be readily obtained in Marion Square Park and downtown Woodburn. Marijuana, methamphetamine, and small amounts of club drugs are available at the Transit Mall. 1. Methamphetamine Methamphetamine is readily available in the HIDTA region, often in pound and multi-pound quantities. There are three types of methamphetamine available in the HIDTA counties. These are: (1) Mexican, or crystal, methamphetamine, produced primarily by Mexican DTOs operating in Mexico and to a lesser extent in California and the southwest states, and transported to Oregon; (2) Locally-produced methamphetamine which is manufactured by Caucasian producers in the state; or (3) Methamphetamine produced in Canada by Caucasian DTOs, Outlaw Motorcycle Gangs, and increasingly, Asian DTOs, and transported to Oregon. Mexican or crystal meth is the primary form of methamphetamine seized throughout the state. However, production by Caucasian violators, although significantly decreased, continues to be a concern. Methamphetamine prices vary throughout the HIDTA region depending on type and quantity sold. Prices also depend largely on the ethnicity of the seller and buyer. Non-Hispanic buyers are often charged a higher price for Mexican methamphetamine than Hispanic buyers. Methamphetamine trafficking is dominated by Mexican DTOs, the primary wholesale transporters and distributors of Mexican methamphetamine in the HIDTA region. Other DTOs also transport and distribute wholesale quantities of methamphetamine, but to a lesser extent. Caucasian and Hispanic independent dealers, OMGs, street gangs, and prison gangs are the primary retail level distributors of methamphetamine in the HIDTA counties. In March 2009 detectives from the Central Oregon Drug Enforcement (CODE) team and Deschutes County Street Crimes team concluded an extensive joint investigation into the distribution of methamphetamine through Rigoberto s West restaurant in Bend. The investigation included CODE detectives making several undercover methamphetamine purchases directly from the owners of the restaurant who were selling through the restaurant s drive through window, as well as directly over the counter inside. The investigation concluded with the service of three search warrants at three different locations resulting in the seizure of over 5 ounces of methamphetamine, over 2 ounces of marijuana, scales, and packaging material, $37,800 in cash, six firearms and two vehicles. 2. Marijuana Marijuana is readily available in wholesale quantities in the state. Locally-grown, BC Bud, and Mexico-produced marijuana are the varieties available in the HIDTA region. Users report BC Bud and locally-grown marijuana, including bud produced locally by Mexican DTOs, have a better texture and taste and a higher THC content than marijuana grown in Mexico. In Oregon, locally-grown marijuana and BC Bud are considered to be of equal quality and are more popular than Mexico-produced varieties. In some areas of the state, BC Bud is available in 30 to 50

35 5 of 72 9/15/2010 3:23 PM pound quantities. Marijuana prices vary throughout the HIDTA region depending on type and quantity sold. Marijuana with higher THC content and locally-grown product is considerably more expensive than Mexico-produced marijuana. Caucasian local independent dealers are the primary distributors of wholesale amounts of indoor marijuana produced in Oregon while Mexican DTOs are the primary distributors of marijuana cultivated from outdoor grows in the state and of Mexico-produced marijuana. Asian and Caucasian DTOs are the primary wholesale distributors of marijuana produced in Canada; however, other criminal organizations also distribute wholesale quantities of this type of marijuana, but to a lesser extent. Nearly all criminal groups in Oregon sell marijuana at the retail level. 3. Heroin Heroin, primarily Mexican black tar, is readily available in the HIDTA region and appears to have increased in availability in the HIDTA region. HIDTA funded drug task forces reported a 145 percent increase in the number of heroin seizures between 2008 and 2009 and reported significantly larger quantities being seized, including multi-pound and multi-kilogram amounts. Recent reporting also suggests increased availability of brown powdered heroin, sometimes referred to as gunpowder heroin, in the Portland Metro region and in counties such as Deschutes, Douglas, Jackson, Lane, and Marion. Mexican DTOs are the primary wholesale distributors of Mexican black tar heroin and Mexican brown powdered heroin in Oregon. It is common to encounter Mexican polydrug organizations with ties to Mexico. Hispanic and Caucasian independent dealers are the primary retail level distributors of Mexican black tar heroin and Mexican brown powdered heroin in Oregon. Criminal street gangs also distribute Mexican black tar heroin at the retail level in the state, but to a lesser extent. In 2009, the Clackamas County Interagency Task Force concluded an 18-month, Title III investigation into a complex Mexican drug trafficking ring organization that sold an estimated 7 pounds of heroin a week in the Portland metro area. The investigation led to over 15 arrests and the seizure of approximately 50 pounds of heroin, resulting in the complete dismantling of the DTO which had been operating in the Portland area for several years. Also in 2009, the Medford Area Drug and Gang Enforcement (MADGE) team and FBI investigators concluded a successful Title III investigation of a heroin distribution ring operating in Southern Oregon with ties to the Portland area and Southern California. Main suspects in the organization were gang members and associates of a violent Sureños street gang based in Ventura County. On October 4, 2009, approximately 160 local, county, state and federal law enforcement officers executed 14 search warrants resulting in the arrest of 22 individuals and the seizure of approximately 3 pounds of heroin, 89 pounds of marijuana, ounce quantities of psilocybin, methamphetamine, and cocaine, 5 firearms, 4 vehicles, and over $22,000 in currency. 4. Cocaine Cocaine, both powdered and crack, is available in the HIDTA counties; however, powdered cocaine continues to be the most prevalent form. Nearly three-quarters of Oregon law enforcement agencies surveyed report a moderate to high level of cocaine available in their jurisdictions 99. In February 2009, two traffic stops conducted by Oregon State Police (OSP) on I-5 led to the discovery of 31 pounds of cocaine (seized near Canyonville) and 51 pounds of cocaine (seized north of Woodburn). The total estimated value of the seizures was $1.1 million. OSP

36 6 of 72 9/15/2010 3:23 PM reported several large seizures since October 2007, suggesting sustained availability in the HIDTA region 100,101. Crack cocaine continues to be available, primarily in urban areas of the HIDTA region, such as Portland. Mexican DTOs are the predominant wholesale distributors of powdered cocaine in Oregon. Mexican DTOs, Caucasian DTOs, Hispanic and Caucasian local independent dealers, and criminal street gangs are the primary distributors of powdered cocaine at the retail level in Oregon. OMGs also distribute powdered cocaine at the retail level in the state, but to a lesser degree. Although crack cocaine generally is not sold at the wholesale level in Oregon, the drug is commonly distributed at the retail level by Mexican DTOs, criminal street gangs and Caucasian DTOs. 5. Diversion of Prescription Drugs Recent studies suggest diversion of prescription drugs occurs largely through illicit acquisition of prescription medications from friends or relatives 102. However, prescription drugs are also diverted through pharmacies, patient deception or manipulation of doctors, drug thefts, internet Table 1. Prescription drugs diverted in the Oregon HIDTA improper purchases, prescribing traditional practices drug dealing, by physicians and Oxycodone (Percocet, Percodan, OxyContin) Hydrocodone (Vicodin, Lortab, Lorcet, Anexsia) Hydromorphone (Dilaudid) (Table 1). Pharmacy diversion occurs when Codeine (acetaminophen with codeine) pharmacy employees steal products from the Dextroamphetamine (Dexedrine) shelves or through prescription forgeries. Dextromethorphan (DXM, Coricidin HBP) Pharmaceuticals can also be diverted doctor shopping, a scheme in which through Morphine Methadone Methylphenidate (Ritalin) individuals visit numerous physicians to Benzodiazepines (Valium, Xanax, Klonopin, Ativan) obtain drugs in excess of what should Barbiturates (Seconal, Nembutal) legitimately be prescribed. Drug thefts occur Sildenafil (Viagra) at retail pharmacies, nursing homes, medical Carisoprodol (Soma) Steroids clinics, pharmaceutical manufacturers and distributors, and prisons. Prescription drugs have also been seized from package delivery services. Additionally, law enforcement officers have encountered pharmaceuticals purchased via the internet without a doctor s prescription. In the past, the diversion of pseudoephedrine products has been a major contributor to the local production of methamphetamine. In 2005, the Oregon legislature passed HB 2485 and SB 907, making Oregon the first U.S. state to require a doctor's In May 2009, Salem Police officers arrested two men in connection with a robbery of a Rite Aid pharmacy prescription where more than to 1,200 purchase painkiller cold pills and containing allergy medications pseudoephedrine, ephedrine, or were stolen. One of the robbers held a knife to the phenylpropanolamine. Based reduction on the in significant methamphetamine throat of a pharmacy lab seizures worker between while demanding her coworkers hand over OxyContin pills. After the 2004 and 2009 (97%) 103 and a continued decline in coworkers complied by giving the perpetrator several bottles of Oxycontin, the robber released reported precursor purchases since 2005

37 7 of 72 9/15/2010 3:23 PM (14%) 104, local the woman and was picked by an accomplice in a production of methamphetamine appears to have getaway car. significantly declined. However, local availability of methamphetamine has not decreased. Two Men Arrested in Rite Aid Robbery Case, Fox 12 Oregon, 5/12/09. Law enforcement in Oregon report that perpetrators of robberies and burglaries of pharmacies in the HIDTA region have targeted oxycodone products. Thieves may use the drugs themselves or distribute them to other individuals, including friends and family members. According to federal authorities, illicit internet pharmacies have become one of the fastest growing methods of diverting controlled pharmaceuticals 105. Dishonest or rogue internet pharmacies exist to profit from the sale of controlled prescription medications to buyers who have not seen a doctor or do not have a prescription from a legitimate doctor 106. Drug Enforcement Administration (DEA) reporting indicates that most rogue sites currently in operation are located in the United States, collude with unscrupulous doctors and pharmacies, and employ increasingly sophisticated methods 107. The number of internet pharmacies advertising and selling controlled prescription drugs increased 70 percent from 2006 to 2007, but decreased 37 percent from 2007 to Federal sources suggest cooperation between law enforcement agencies, Internet Service Providers, and financial and package delivery services as a principal reason for the reduction in the number of rogue pharmacies operating on the Internet 109. New regulations designed to prevent the illegal distribution of controlled substances through the internet went into effect in April 2009 m and may serve to further diminish the influence of illicit pharmacies. 6. Designer Drugs Designer drugs, including MDMA, GHB, ketamine, PCP and LSD, are readily available in varying quantities in the HIDTA region. The combination of consistent low prices and an increase in the number and quantity of shipments interdicted by law enforcement officers suggests an increase in the overall threat concerning these drugs. Distributors of designer drugs primarily use established associations centered on social venues, such as raves, restaurants, nightclubs, or private parties to distribute drugs at the retail level. In 2009, ROCN and WIN HIDTA task forces investigated a Portland based ecstasy distribution ring which resulted in the service of a search warrant at the home of the DTO leader. Upon processing the location for evidence, investigators seized over a half pound of ecstasy, three guns, scales and packaging material. Three DTO members, including the leader, were arrested on state drug charges. 7. Other Drugs Psilocybin is widely available in Oregon. Tightly-knit distribution groups and individual entrepreneurs distribute most of the psilocybin in Oregon. Psilocybin mushrooms are also cultivated in the state. The popularity of Oregon-grown psilocybin and the high asking price it commands has encouraged commercial cultivation. Distributors in Oregon also have been known to sell psilocybin to out-of-state buyers.

38 8 of 72 9/15/2010 3:23 PM VI. ILLICIT FINANCE All drug trafficking organizations in Oregon engage in money laundering based upon the size and scope of the organization. As in other states, investigators find that local DTOs launder money and utilize the proceeds to acquire goods and property. According to the NDIC, an estimated $33 to $56 billion in drug proceeds are generated annually from the sale of Canada-produced drugs in the United States, primarily by Asian DTOs, with much of m The law amends the Controlled Substances Act through the addition of new provisions such as requiring at least one faceto-face patient medical evaluation and new registration, disclosure, and prescription reporting requirements for online pharmacies (Source: New Rules Governing Internet Pharmacies Go Into Effect Today, DEA News Release, April 13, 2009). the profit likely smuggled north across the U.S. Canada border. Furthermore, Mexican and Columbian DTOs generate and launder between $18 and $39 billion in wholesale drug proceeds each year, most of which is believed to be smuggled out of the United States at the Southwest Border 110. Recent analysis of the amount of repatriated U.S. banknotes points to significant bulk cash smuggling occurring along the U.S.-Mexico border 111. Since 2001, Mexican DTOs, and to a lesser extent Canadian-based DTOs, have adapted to enhanced anti-money laundering policies and procedures at U.S. financial institutions by making bulk cash smuggling the primary method by which drug proceeds are moved 112. Within the Oregon HIDTA, Mexican DTOs and criminal groups transport cash in bulk to southwestern states where funds are often aggregated and then smuggled to Mexico. Additionally, Asian DTOs and criminal groups use bulk cash smuggling to move illicit drug proceeds from the region through transport in private vehicles through ports of entry (POEs) along the U.S.-Canada border. Smuggling bulk cash out of the United States is a well-established laundering method with cash concealed in vehicles, commercial shipments, express packages, and on private aircraft or boats. According to federal sources, bulk cash smuggling is the largest and most significant drug money laundering threat facing law enforcement. For example, in November 2008, nearly $270,000 in cash was seized from a concealed compartment in a vehicle traveling south on I-5 from Vancouver, Washington to San Pedro, California. Through a follow-up investigation, the HIDTA Interdiction Team discovered and seized $67,000 in cash buried under a residence as well as $22,000 from a suspect s bank account. In February 2009, more than $400,000 in US currency was seized through a traffic stop from a vehicle traveling southbound on I-5 near Salem, Oregon. DTOs also use structured money transfers through money remitter services or banks to launder drug proceeds and transfer profits outside of the country. Banks and other depository institutions remain the primary gateway to the U.S. financial system where illegal proceeds can be moved instantly by wire or commingled with legitimate funds 113. New financial products and technology, such as stored value cards and e-currency, also provide opportunities for DTOs to facilitate cross-border movement of illicit drug proceeds. Results from the National Drug Threat Survey 2010 indicate the most commonly identified money laundering methods reported by Oregon law enforcement were bulk cash movement (72%), money services businesses (68%), cash-intensive businesses or front companies (50%), and real-estate (32%). Prepaid cards (20%), bank structuring (18%), and electronic commerce (12%) such as online payment systems and digital currency were also cited as methods used by DTOs in Oregon but to a lesser extent 114. According to FINCEN, Oregon ranked 30th in the nation in

39 9 of 72 9/15/2010 3:23 PM total Suspicious Activity Report (SAR) n filings from April 1, 1996 to June 30, 2009 with the number of SARs reported in Oregon rising 85 percent between 2003 and 2008, but dropping 53 percent in The most common filing of suspicious activity, by far, for Oregon in 2009 was the category of Bank Secrecy Act/Structuring/ Money Laundering (39%) (Figure 19, p. 37). n A Suspicious Activity Report (SAR) is filed by depository institutions on transactions or attempted transactions involving at least $5,000 that the financial institution knows, suspects, or has reason to suspect: involve money derived from illegal activities; are intended or conducted in order to hide or disguise funds or assets derived from illegal activity; are designed to evade Bank Secrecy Act requirements or other financial reporting requirements (structuring); or have no business or apparent lawful purpose. Drug trafficking is unquestionably centered on monetary gain. And, with every investigation, task force investigators evaluate the potential for the seizure of assets obtained as a result of the drug trafficking enterprise. Drug proceeds reported by Oregon HIDTA task forces for 2009 totaled $545.2 million, more than three times the amount of proceeds seized in 2008 ($141.8 million) and 48 times the value of drug proceeds in 2004 ($11.1 million). In 2009, Oregon HIDTA task forces seized nearly $4 million in drug-related assets, with $2.9 million seized in cash/currency and $1 million in other assets seized (e.g., vehicles, firearms).

40 0 of 72 9/15/2010 3:23 PM The IRS and some of the HIDTA initiatives have active investigations into money laundering activities involving Mexican DTOs. For instance, in 2009, HIT acted on a tip from Federal Express regarding a suspicious parcel containing cash sent from Baltimore, Maryland to Portland, Oregon. The parcel showed indicators of money laundering and when opened contained marijuana. A subsequent search of the suspect s residence led to the discovery of evidence of a large-scale marijuana DTO based in Portland with ties to Canada and across the United States. VII. OUTLOOK Methamphetamine will remain the most significant drug threat in the HIDTA region due to sustained availability and the societal impact of associated criminal activity. However, recent declines in some indicators of use are a positive sign and may signify declining addiction level. Methamphetamine-related crimes such as identity theft, property and violent crimes will continue to follow the trend of abuse. Local manufacturing of methamphetamine will remain at low levels while crystal meth will continue to be imported across U.S. borders from large-scale laboratories in Mexico. Precursor controls at the local, national and international level will continue to cause pressure on the manufacture of methamphetamine, forcing producers to find alternative routes and sources to sustain production levels. Expanded methamphetamine production in Mexico, despite strict Government of Mexico chemical control laws, will likely lead to increased availability of crystal meth in the United States, including Oregon. Outdoor production of marijuana controlled by Mexican DTOs will continue to expand within the HIDTA region, as well as the rest of the state. The flow of marijuana from Canada will continue due to strong demand, a variety of transportation options and the attraction of high profits with relatively low risk. In addition, Asian organized crime groups may expand indoor marijuana production operations within Oregon as a way to avoid the risks associated with cross-border transport between Canada and the United States. Exploitation of current Medical Marijuana laws will continue to encourage larger indoor marijuana grow operations, impede law enforcement efforts to investigate illegal marijuana operations, and complicate prosecution efforts. Grow sites will remain lucrative targets for armed take-over robberies and burglaries. Heroin use and availability will increase as production in Mexico continues to expand and as users of prescription opiates increasingly switch to heroin because it is less expensive, more available and provides a more intense high than diverted prescription opiates. Availability of cocaine in Oregon may decrease, mirroring national trends, as production levels continue to decline in source countries such as Columbia. Prescription drug abuse and trafficking will continue to rise provided that these drugs remain widely available, easily accessible and are perceived as a safe, legal alternative to illicit drugs. New regulations designed to prevent the illegal distribution of controlled substances through the internet will likely diminish the influence of illicit pharmacies. Continued drug cartel wars may cause sporadic, spot disruption in drug supplies from Mexico. Interdiction efforts by law enforcement

41 1 of 72 9/15/2010 3:23 PM may impede the previous free movement of drugs and proceeds through the state by distributors. Oregon HIDTA law enforcement investigators have identified one-hundred and forty (140) drug trafficking organizations and six money laundering organizations operating in Oregon during 2009 (Table 2). These organizations range from five members to hundreds of members. They are, or were in some cases, manufacturing and/or distributing drugs within the state of Oregon as well as to other states. Table 2. Known Drug Trafficking Organizations CY 2009 Organization Type Drug Trafficking 140 Money Laundering 6 DTO Characteristics* African-American 4 Asian 5 Caucasian 30 Mexican/Hispanic 96 OMG 3 Laotian 2 Vietnamese 9 *DTO categories may have more than one ethnicity assigned. Operational Scope Local 31 Dismantled = 5 Disrupted = 11 Multi-State 79 Dismantled = 6 Disrupted = 11 International 36 Dismantled = 7 Disrupted = 9 VIII. METHODOLOGY The Oregon HIDTA supplemental threat assessment was developed through consideration of information from a variety of sources. Quantitative information was collected and reviewed on seizures, arrests, corrections data, employer drug testing, drug-related deaths, admissions to treatment facilities, and from law enforcement surveys, national surveys of self-reported drug use among various age groups, and from accepted sources of drug price and purity. Qualitative data, such as trends in use, production and cultivation levels, the presence and level of involvement of organized criminal groups in trafficking and distribution, and related criminal activity were also considered. One of Oregon HIDTA's strong points is the analysis and collation of information in a centralized database within the Investigative Support Center (ISC) which is obtained through case support. This centralized database allows the ability to keep statistics, assist and support investigations, identify patterns and trends as a result of supporting local, multi-state, and in some instances, international cases.

42 2 of 72 9/15/2010 3:23 PM IX. APPENDICES Oregon HIDTA Supplemental Report 2010 Tables Appendix A As of April 1, 2010 Oregon medical marijuana statistics are as follows: Number of persons currently holding medical marijuana cards: 32,929 Number of persons holding caregiver cards for the above persons: 16,922 Number of Oregon-licensed physicians who have signed applications for medical marijuana cards: 3,312 Number of new applicants for medical marijuana cards between 4/1/09 and 3/31/10: 21,213 Number of renewal applications between 4/1/09 and 3/31/10: 13,746 Number of pending applications on April 1, 2010: 3,474 Number of applications denied between 4/1/09 and 3/31/10: 1,143 Reported medical conditions include: Agitation related to Alzheimer s disease Cachexia Cancer Glaucoma HIV+/AIDS Nausea Severe pain Seizures Persistent muscle spasms Appendix B Source: Oregon Medical Marijuana Program. HIDTA Counties Marijuana Plants Seized in HIDTA Counties, Crop Total Plants Crop Total Plants Crop Total Plants Crop Total Plants Crop Seizures (In/Outdoor) Seizures (In/Outdoor) Seizures (In/Outdoor) Seizures (In/Outdoor) Seizures Total Plants (In/Outdoor) Clackamas (322/82) (77/178) 21 1,507 (1,013/494) (689/2) 46 8,379 (773/7,606) Deschutes (662/21) 4 95 (95/0) 25 1,164 (1,155/9) (943/0) (624/185) Douglas 56 4,337 (452/3,885) 73 2,870 (546/2,324) 73 19,334 (457/18,877) 58 10,581 (696/9,885) 48 22,492 (618/21,874) Jackson 66 26,549 (1,453/ 25,096) 52 43,860 (204/43,656) 27 54,482 (120/54,362) (227/293) 23 26,880 (8/26,872)

43 3 of 72 9/15/2010 3:23 PM Lane 32 1,684 (1,095/589) 34 2,063 (702/1,361) 47 3,045 (2,649/396) 83 8,948 (2,547/6,401) 62 9,129 (8,349/780) Marion (424/98) (556/86) 17 3,251 (268/2,983) (303/65) (113/477) Multnomah 31 1,740 (1,740/0) 46 2,891 (2,447/444) 86 8,778 (8,527/251) 60 2,804 (2,615/189) 68 4,295 (4,167/128) Umatilla 2 9 (2/7) 17 5,9672 (29/5,938) 9 29,064 (17/29,047) 5 22 (21/1) 4 7,365 (0/7,365) Warm Springs ,763 (0/17,763) 2 12,828 (0/12,828) 1 1,630 (0/1,630) Washington (3/102) (131/241) 13 3,819 (682/3,137) (5/603) 8 2,857 (107/2,750) 36,033 (6,153/ 59,015 (4,787/ 142,207 38,313 (8,046/ 84,426 HIDTA Total ,880) ,228) 319 (14,888/ ,267) 293 (14,759/ 69,667) 127,319) Statewide Total ,605 (7,590/ 40,015) ,573 (6,834/ 101,739) ,013 (16,454/ 245,559) ,701 (8,805/ 76,896) 515 Notes: 1 The large number of plants seized in 2006 reflects a shift in law enforcement resources from detection of meth labs to investigation of marijuana grows due, 230,011 (19,863/ 210,148) Source: DEA Domestic Cannabis Eradication/Suppression Program (DCE/SP). Appendix C Methamphetamine Laboratory Seizures in HIDTA Counties Year % Change ( ) Statewide % HIDTA area Clackamas % Deschutes % Douglas % Jackson % Lane %

44 4 of 72 9/15/2010 3:23 PM Marion % Multnomah % Umatilla % Washington % Source: Oregon Department of Justice, Oregon State Intelligence Network. X. ATTACHMENT Portland Specific Drug Data This memo will document a number of measures of drug usage in Portland and Multnomah County, following up previous year s memos. The source for the data is PPDS or CAMIN2, unless otherwise noted. Summary of drug arrests for the last five calendar years, Portland Police Bureau agency-wide Five year Trend Charges 7,752 7,793 5,888 4,959 4,078-47% Cases 5,208 4,828 3,916 3,306 2,746-47% People 4,295 4,374 3,595 3,040 2,604-39% Individuals During 2009, 346 of the people (13.3%) had drug charges in more than one case. This includes one person that had drug charges in ten cases. The chronic offender was a 38 year old F/B who was arrested for cocaine ten times, primarily in Central precinct, by eight different officers. In 2005 and 2006, 800 and 797 people, respectively, had drug charges in more than one case. In 2005, 18 people had drug charges in ten or more cases. The changes in those numbers in the last few years may indicate some success in targeting repeat offenders, although it may simply be a function of lower numbers of drug arrests overall. These are the numbers of individuals with charges for each of the listed drugs. These do not add to the total number of people because a person

45 5 of 72 9/15/2010 3:23 PM may be arrested for more than one type of drug during the year Five year Trend Marijuana<1 oz % Cocaine 1,479 1,838 1,440 1, % Amphetamines 1,597 1, % Heroin % Marijuana>1 oz % Ecstasy % Codeine % Tranquilizers % Hashish % Oxycodone 15 N/A Hallucinogens % Methadone % Hydrocodone 7 N/A All Other Drugs % Technical Offenses % All other drugs include the following classifications: synthetics, barbiturates, morphine, dangerous drugs, LSD, and opium. Technical offenses include frequenting a place where controlled substances are used, distributing to a minor, MCS/DCS/PCS within 1000 feet of a school, adult using a minor in a controlled substance offense, prohibited acts involving records and fraud, causing another person to ingest a controlled substance, and applying a controlled substance to another person. The overwhelming trend of note is the continuing decline in drug arrests, especially for methamphetamine and cocaine. There is no clear explanation for this decline, especially since there has been a recent increase in the number of heroin arrests. Some of the variables in play include a change in enforcement focus, changes in availability of drugs, court decisions regarding search and seizure, and an overall lower number of arrests for all crimes. Arrests from the first four months of 2010 indicate that the decrease in drug arrests continues, and that the increase in heroin arrests for 2009 was temporary. Arrests by year by Drug Type Portland Police Bureau

46 6 of 72 9/15/2010 3:23 PM Year Connections of Drug Activities to Other Crimes For persons charged with Part I crimes in 2009, the following table shows the percentages that were arrested for various drug (and alcohol) charges from For instance, of the people who were arrested for any burglary charge in 2009, 7.0% were arrested for an amphetamine charge during Most of these numbers are similar to numbers from last year. Relatively small numbers of arrests for homicide and rape cause variations in the percentages in those categories. Alcohol continues to be the substance with the closest correlation with most Part I crimes, although robbery, burglary, and motor vehicle theft see heavy influence from other controlled substances as well. Ampheta mines Cocaine Marij<1 oz Heroin Marij>1 oz Alcohol/ DUII Homicide Rape Robbery Agg Assault Burglary

47 7 of 72 9/15/2010 3:23 PM Larceny Motor Vehicle Theft Arson And similarly for selected Part II crimes. There continues to be a significant correlation between marijuana less than an ounce and weapons charges, as well as some correlation between marijuana and alcohol charges. Much of the connection between alcohol and things such as curfew and runaway is probably due to the young ages of the offenders. Ampheta mines Cocaine Marij<1 oz Heroin Marij> 1 oz Alcohol/ DUII Simple Assault Forgery Fraud Stolen Property Weapons Prostitution Sex Offenses DUII N/A Alcohol laws N/A Disorderly conduct Trespass/etc Curfew Runaway Location Five year Trend Locations of drug arrests Locations with more than one drug arrest 2,867 2,799 2,406 2,111 1,837-36% 1,209 1,278 1, % The seven most popular locations to take a person into custody for a drug charge were in Central Precinct. These include Waterfront Park, North Park Blocks, SW 1 st and Ankeny, NW 6 th and Davis, NW 6 th and Couch, SW 4 th and Washington, and the East Bank Esplanade. The downturn in the number of locations continued for 2009, which is related to the lower number of drug arrests overall. Some of the changes in location

48 8 of 72 9/15/2010 3:23 PM downtown are likely due to the restoration of the bus mall to its former location. Location of Drug Arrests By Precinct Precinct Five Year Trend Central % East 1, % North % Other % Other precinct refers to arrests made by Portland Police, but outside the geographical boundaries of PPB precincts. The largest single group of these occurs in Gresham. Drug Related Deaths (Multnomah County) Five year Trend Heroin % Cocaine % Methamphetamine % Combination % Total % Source: Oregon State Police, Medical Examiner Division. Heroin overdose deaths are decreasing somewhat after a slight increase of the last two years, and cocaine related deaths are down significantly after years of being essentially unchanged. Methamphetamine related deaths also are down after a slight increase in The overall drug related deaths have remained fairly steady (around 100 per year) over the five year period, with slight variation from year to year. Drug Overdose Deaths by year by Drug Type Multnomah County

49 9 of 72 9/15/2010 3:23 PM Drug Treatment Episodes (Oregon) Deaths

50 0 of 72 9/15/2010 3:23 PM Five year Trend Heroin 2,898 3,143 3,306 3,420 3, % Non-Heroin Opiates ,196 1,662 2, % Non-Prescription Methadone % (one year change) Other Opiates/Synth 1,467 1, % (one year change) Cocaine-Smoked (total below) Cocaine-Other (total below) Total Cocaine/Crack 1,050 1,076 1,140 1,124 1,116 +6% Marijuana 6,902 6,953 7,060 7,037 8, % Methamphetamine 8,561 10,018 9,004 8,112 7,048-18% Source: U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA). The reporting from SAMHSA changed somewhat two years ago. The non-heroin opiates category has been broken down into non-prescription methadone and other opiates and synthetics. Both of these categories need to be monitored. Treatments for this category have now surpassed cocaine in the state. I have not been able to find county breakdowns for this, so it is not known if this is primarily impacting the Portland area or other parts of the state. Other opiates and synthetics include oxycodone (trade name: Oxycontin) and hydrocodone (trade name: Vicodin). There has been growth of both of these in the last several years, and may be an additional substance of abuse for those who might also be using heroin or other drugs. Cocaine is no longer broken down between smoked (crack) and other.

51 1 of 72 9/15/2010 3:23 PM When comparing data in past years between Multnomah County and the rest of the state, it appears that the bulk (80-90%) of heroin and cocaine treatment is done in Multnomah County. In contrast, the majority of methamphetamine and marijuana treatment (70-80%) is done outside of Multnomah County. This supports anecdotal information about contrasting drug usage in Portland and other parts of the state. Treatment Episodes Drug Treatment Episodes by year and Type of Drug State of Oregon

52 2 of 72 9/15/2010 3:23 PM Oregon Drug Treatment by Drug Type, Race and Gender (2008) % White % Black % Native American % Asian % Other % Male % Female Heroin

53 3 of 72 9/15/2010 3:23 PM Non-Prescription Methadone Other Non-Heroin Opiates Cocaine Marijuana Methamphetamine Source: U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA). The main item of note here is that cocaine continues to have a very different ethnic breakdown than other drugs, even more so than in previous years. While most people involved in law enforcement already recognize that, this gives us a separate assessment of that phenomenon. This is at least some indication that disproportionate arrests of African Americans for cocaine may be due to disproportionate use of that drug, rather than racial profiling or prejudice on the part of the police. The other item of interest is the indication that women continue to be heavier users of methamphetamine and non-heroin opiates than other drugs, at least in Oregon as a whole. Hospital Drug Overdose Rates Self-Reporting Surveys for Drug Use The Drug Abuse Warning Network (DAWN), which is run by SAMHSA, does have information on hospital emergency department mentions by drug. However, the information only covers certain cities, and Portland is not included. The nearest cities included are Seattle and San Francisco, which may have patterns that are considerably different than Portland. The 2007 National Survey on Drug Use and Health is also a project of SAMHSA. It is the successor to the National Household Survey on Drug Abuse, which has been in use since 1971, and interviews about 67,500 civilian, non-institutionalized people in the United States aged 12 and older. This survey collects a lot of information, but only breaks down data by broad geographic regions, not into county or state level categories. Based on numbers from the national survey, I estimate that there are 40,000 to 50,000 people that live within the Portland city limits that have used illicit drugs within the past 30 days. We are (at most) arresting about 10% of the individuals that are using drugs at any given time. This is not counting the people that do not live in Portland, but work in, play in, or otherwise visit the city and may be using or buying drugs during the time they are in the City of Portland. Conclusion There continue to be mixed indicators of drug usage in the City of Portland. Arrests, overdose deaths and treatment for methamphetamine and cocaine are down. Heroin, which had been showing a steady decrease in arrests and overdose deaths in recent years, is now showing variation in overdose numbers, and increases in arrests and treatment. Marijuana has become the controlled substance with the greatest number of arrests in Portland, and the greatest amount of treatment in Oregon, but without any overdose deaths.

54 4 of 72 9/15/2010 3:23 PM One area of major concern is that there is an ongoing increase in the use of non-prescribed pharmaceuticals, especially methadone and oxycodone. Even with the decreasing numbers of arrests and overdose deaths, few people believe that there is a lack of drug availability in the City of Portland. Rather, the lower arrests are likely to be attributable to a higher degree of difficulty in doing consent and inventory searches, and the lower overdose deaths may be due to the drugs use flowing to the adjoining counties, where there have in fact been an increase in overdose deaths. Prepared by: Scott Partridge Crime Analyst Strategic Services Division Portland Police Bureau XI. INTRODUCTION The Oregon High Intensity Drug Trafficking Area (HIDTA) Counter-Drug Strategy details and is the Executive Board s plan to reduce the identified drug threat in the Oregon HIDTA areas. The Counter Drug Strategy is linked to the drug threat and initiatives through a clear delineation of the relationship between the problems posed by the threat, the actions to be taken by the participating agencies and the anticipated impact on the region. HIDTA funds will be expended in a manner to maximize the leveraging of Federal, state, local and tribal agency contributions that are committed to the HIDTA mission. The Oregon HIDTA Counter-Drug Strategy describes how the Executive Board maintains oversight and direction of the HIDTA, the HIDTA intelligence subsystem, and the plan for area law enforcement agencies to coordinate and combine drug-control efforts. The strategy embodies the spirit of the HIDTA program, clearly demonstrating how Federal, state, local and tribal agencies have combined drug control efforts to reduce drug trafficking, eliminate unnecessary duplication of effort, maximize resources, and improve intelligence and information sharing. The Oregon HIDTA Counter Drug Strategy identifies its expected overall accomplishments in the region to support the design of the strategy and to provide the ability to measure the strategy s success at the end of the year. The Oregon HIDTA Counter Drug Strategy also contains the anticipated developmental standards attainment and addresses the performance targets set by the Performance Measurement Program (PMP). The collocated and commingled drug and gang task forces and initiatives are built to implement the Oregon HIDTA Counter-Drug Strategy and are comprised of full-time, multi-agency participants. If the HIDTA incorporates an existing task force, intelligence or support operation, or other program into the HIDTA s Counter-Drug Strategy, then the value added by such a group to the HIDTA is evident. Additionally, if the existing group is an investigative support element then the amount of HIDTA funds allocated by the Executive Board must be determined based on specific measurable support provided to the HIDTA. HIDTAs nationally have adopted two specific goals to be achieved in meeting the drug challenge. The Oregon HIDTA Counter Drug Strategy is developed to meet local drug threats according to its individual needs, in conjunction with the national objectives. GOAL 1: Disrupt the market for illegal drugs by dismantling or disrupting drug trafficking and/or money laundering organizations; and

55 5 of 72 9/15/2010 3:23 PM GOAL 2: Improve the efficiency and effectiveness of HIDTA initiatives. The Oregon HIDTA Counter-Drug Strategy contains the performance targets that should be realized after it is implemented. The HIDTA Goals represent clear targets for the Oregon initiatives. They also provide the foundation upon which performance planning and outcome measurements are based. As the Oregon HIDTA initiatives develop budget submissions, each initiative must present programmatic and fiscal requests that are based on the Threat Assessment; must articulate how the initiative s funding request directly addresses the threat; set realistic performance measures, and each initiative must eventually provide specific information on how the funding has allowed the Oregon HIDTA to meet its desired outcomes. The Oregon HIDTA initiatives are developed within clear national guidelines governing all HIDTA activities and expenditures. The Oregon HIDTA, which consists of nine designated counties and the Warm Springs Indian Reservation, is governed by an Executive Board comprised of 16 voting members and three ex-officio non-voting members who represent the participating agencies. The Oregon HIDTA Executive Board, through subcommittees as needed, oversees and coordinates the integration and synchronization of efforts, to reduce drug trafficking, eliminate unnecessary duplication of equipment or effort, and systematically improve the sharing of drug intelligence and targeting information. The Executive Board reviews all initiative requests for approval and submission to the Office of National Drug Control Policy (ONDCP). The Oregon HIDTA director s office supports the Executive Board and provides guidance in initiative/budget requests. During 2011 the director s office will conduct on-site fiscal and programmatic reviews of each initiative to evaluate their effectiveness and progress. These review findings will be reported, in written form, and discussed formally with the Executive Board during scheduled meetings throughout the year. The Executive Board is involved in all aspects of the intelligence, enforcement, prosecution and support activities. The Executive Board provides a forum to share important trends in drug trafficking, gathers information on which drugs are being distributed throughout the region, and identifies drug trafficking organizations. The Executive Board also addresses important administrative issues in its oversight capacity. The Executive Board has established a Finance Subcommittee that supports the Oregon HIDTA initiatives and its participating agencies on a wide variety of program and budget issues, computer technology and other matters. The success is measured by results, and each initiative is fully accountable for its success or failure in meeting its objectives. XII. MISSION AND VISION STATEMENTS The National HIDTA Mission Statement The overall HIDTA Mission is embodied by the National HIDTA Mission Statement: NATIONAL HIDTA MISSION

56 6 of 72 9/15/2010 3:23 PM The mission of the HIDTA is to disrupt the market for illegal drugs in the United States by assisting Federal, state, local and tribal law enforcement entities participating in the HIDTA program to dismantle and disrupt drug trafficking organizations, with particular emphasis on drug trafficking regions that have harmful effects on other parts of the United States. In conjunction with the national program goals, the Oregon HIDTA operates under the following mission: OREGON HIDTA MISSION The Oregon HIDTA Executive Board developed the following vision statement that clearly reflects what outcomes the Oregon HIDTA strives to achieve: OREGON HIDTA VISION The Oregon HIDTA values represent the core priorities of the program and are incorporated in the decision making process and behavior of the Executive Board and the Oregon HIDTA participants.