Distribution

Mexican DTOs dominate illicit drug distribution from the Northern California HIDTA region; however, other groups, gangs, and independent dealers have increased the amount of drugs that they distribute from the area. Mexican DTOs and criminal groups use the area as a base of operations for illicit drug distribution to markets in the Pacific Northwest, the Midwest, Hawaii, Canada, and areas along the East Coast. These groups store, consolidate, and repackage wholesale quantities of cocaine, heroin, marijuana, and methamphetamine from Mexico for distribution to these markets.

Street gangs, prison gangs, and OMGs operating in the HIDTA region distribute illicit drugs to their counterparts in cities located throughout the country to capitalize on the higher profits that can be made in those cities. Various traffickers in the area, including Caucasian criminal groups and independent dealers and Asian DTOs, distribute marijuana produced in northern California and, to a lesser extent, BC Bud to other areas of the country in order to meet the demand for high-potency marijuana. ODDs such as MDMA and GHB (gamma-hydroxybutyrate), diverted pharmaceuticals, and other illicit drugs such as opium and khat that are abused within certain ethnic communities are distributed from the area largely because of the significant quantities of these drugs that are transported from foreign sources into the Customs International Mail Branch located in Oakland.

Distribution Within the HIDTA Region

Mexican DTOs and criminal groups dominate wholesale distribution in the Northern California HIDTA region, supplying wholesale quantities primarily to other criminal groups and gangs--street gangs, prison gangs, and OMGs. These groups then supply midlevel quantities to retail distributors--primarily smaller street gangs and independent dealers. In midsize and large metropolitan areas, street and prison gangs dominate retail distribution, while in small towns and rural areas, independent dealers are the primary retail distributors.

Marijuana distribution patterns have changed in the Northern California HIDTA region as a result of California Proposition 215. Based on National Drug Intelligence Center (NDIC) interviews with federal, state, and local law enforcement, it appears as though some cannabis clubs established under Proposition 215 are being used by traffickers to acquire marijuana for further distribution. A significant portion of high-grade marijuana available in the area is distributed through these cannabis clubs. Illegal marijuana distributors in the area commonly hold medical marijuana cards, which they use to justify producing or purchasing the drug. Many illegal distributors use cannabis clubs as their primary sources of supply, while some illegal distributors who produce marijuana purchase the drug from cannabis clubs when they deplete their own supplies. Marijuana abusers also purchase the drug at cannabis clubs for personal use. The emergence of cannabis clubs and the resulting public complaints have generated community action to regulate the proliferation of such clubs. In San Francisco, a moratorium has been instituted on the opening of additional cannabis clubs.

Additionally, marijuana is being mixed into other products such as candy bars, soda, and other food items. (See Figure 6.) Law enforcement officials in the HIDTA region report that marijuana-laced products are being commercially manufactured and packaged with labels that resemble legitimate products. This creates an additional danger, especially for young people who may consume the marijuana-laced item believing that the product is harmless because it looks legitimate. Treatment providers also indicate that the high THC content of this type of marijuana is especially dangerous for adolescents to consume.

Maker of Marijuana Candy Products Pleads Guilty and Agrees to 70-Month Prison Term

In September 2006 the U.S. Attorney for the Northern District of California announced that a primary suspect and four coconspirators pleaded guilty to manufacturing and distributing cannabis plants and marijuana products that mimicked well-known candy and soft drink brands. The primary subject operated several marijuana cultivation facilities in Emeryville and Oakland. The edible products, sold under the brand name "Beyond Bomb," were designed and packaged to resemble parodies of actual candy, food, and soft drink products. Some of the product labels seized by investigators are "Stoney Ranchers," "Munchy Way," "Rasta Reece's," "Buddafingers," "Pot Tarts," "Double Puff Oeo," "Tri-Chrome Crunch," "Keef Kat," "Twixed," "Budtella," "Puff-A-Mint Pattie," "Puffsi," "Bong's Root Beer," and "Toka-Cola." Law enforcement officers seized four sophisticated indoor cannabis grows, thousands of cannabis plants, a large amount of U.S. currency, two semiautomatic weapons, one revolver, and hundreds of marijuana-laced candy items and soft drinks. These manufacturers have also been successfully sued for copyright infringement.

Drug distribution over the Internet has expanded in the Northern California HIDTA region. Traffickers and abusers often post messages on web sites containing classified advertisements to sell or purchase illicit drugs. Distributors sell marijuana, methamphetamine, MDMA, and diverted pharmaceuticals through the Internet because of the anonymity it provides and the minimal risk of law enforcement detection. Traffickers initiate contact with customers over the Internet and either ship illicit drugs by package delivery services or arrange to have the drugs delivered to a designated location, with payment made through an Internet pay account or in cash upon delivery.

Distribution From the HIDTA Region

Distribution Within the HIDTA Region