Appendix C. OCDETF Regional Summaries

Southeast Regional Overview

Regional Overview

The Southeast Region (SER) encompasses the states of Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee. The region includes three HIDTA programs--Atlanta, Gulf Coast, and parts of the Appalachia HIDTA. In addition, there are 18 U.S. Attorney Districts in the SER. Atlanta is the most significant drug distribution hub in the SER. Mexican DTOs have consolidated their control of the Atlanta cocaine, methamphetamine, and marijuana markets and are using Atlanta as a drug distribution hub to transport narcotics to other drug markets in the Mid-Atlantic, New York/New Jersey, and New England Regions. A significant and growing Hispanic population in the SER enables Mexican DTOs, who dominate the transportation and wholesale distribution of cocaine, methamphetamine, and marijuana in the region, to operate without increased risk of detection. The rates of increase in the Hispanic populations of Alabama, Georgia, North Carolina, Tennessee, and South Carolina from 1990 through 2000 were among the highest in the nation.

Drug Threat Overview

The availability and abuse of cocaine and methamphetamine pose the most significant drug threat to the SER. Mexican DTOs transport multiton quantities of cocaine to Atlanta annually for local consumption and for further transportation and distribution throughout the country, particularly to southeastern and Mid-Atlantic markets. The distribution and abuse of methamphetamine, particularly ice methamphetamine, rose dramatically in recent years as Mexican DTOs increased their transportation of the drug to the region. Marijuana is widely cultivated and abused throughout the region; a substantial portion is produced in central and eastern Tennessee. Pharmaceuticals, specifically narcotic analgesics such as oxycodone, hydrocodone, and methadone, are being increasingly diverted and abused throughout the region. ODDs such as GHB, ketamine, and MDMA pose low-level threats to the SER; Canada-based Asian DTOs have emerged as the principal suppliers of MDMA. The drug threat from heroin is limited primarily to parishes around New Orleans.

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Strategic Regional Developments

• Local methamphetamine production in the SER has decreased significantly as a result of an influx of Mexico-produced ice methamphetamine into the region, which has made local production less necessary. Additionally, state restrictions on precursor chemicals have made the manufacture of methamphetamine more difficult, contributing to the decline in local production.

• Asian DTOs, primarily Vietnamese groups, have emerged as the primary transporters and distributors of MDMA and Canadian high potency marijuana throughout the SER, particularly in larger cities such as Atlanta and Charlotte.

• Hurricanes Katrina and Rita caused many traffickers to relocate from New Orleans to nearby states such as Texas, Georgia, and Mississippi in 2005, changing drug trafficking patterns in those states. As New Orleans recovers, displaced traffickers and abusers are gradually returning and reestablishing the city as a major drug trafficking area in the SER.

• The availability of Mexican black tar (MBT) heroin has increased significantly over the last year in North Carolina, South Carolina, and Tennessee, largely on account of the rising dominance of Mexican DTOs. Additionally, rising purity levels of black tar heroin have made the drug more attractive to abusers.

Variations From National Trends

• Some Mexican DTOs have occasionally sold wholesale quantities of methamphetamine to retailers while the drug is still wet or damp to increase its weight and, therefore, its price. As the drug dries out, it commonly loses 10 to 20 percent of its weight and sometimes as much as 50 percent.

• Asian traffickers are transporting high-grade hydroponic marijuana from Seattle and Canada to markets in the SER via package delivery services or in private and commercial vehicles.

• The rising dominance of Mexican DTOs has increased the availability of MBT heroin in the SER, particularly in North Carolina, South Carolina, and Tennessee--most heroin available east of the Mississippi River is white heroin.

• Wholesale and retail drug networks based in New Orleans that have been disrupted by hurricane evacuations may not fully rebound in the coming year. However, many wholesale distributors have established successful operations in areas outside New Orleans, including Baton Rouge, Lafayette, Shreveport, and Alexandria (LA), and Hattiesburg (MS). As such, when New Orleans recovers, it will very likely be a more prominent regional distribution center, with several outlying markets.

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