National Drug Intelligence Center   Milwaukee High Intensity Drug Trafficking Area Drug Market Analysis 2009   March 2009

Drug Threat Overview

Cocaine and heroin pose the most significant drug threats to the Milwaukee HIDTA region. According to the National Drug Intelligence Center (NDIC) National Drug Threat Survey1 (NDTS) 2009, 12 of the 16 state and local law enforcement respondents in the Milwaukee HIDTA region identify either crack cocaine (7) or heroin (5) as the drug that poses the greatest threat to their jurisdictions.

Law enforcement officials report that cocaine availability in the HIDTA region decreased from August 2008 through March 2009 as indicated by an increase in cocaine prices, a decrease in purity levels, and a decline in the number cocaine-related publicly funded treatment admissions. Cocaine availability in Milwaukee typically decreases for a short time each December, when many members of Mexican trafficking groups return to Mexico to visit family for the holiday season; however, cocaine shortages persisted in the Milwaukee HIDTA region. Law enforcement reporting indicates that cocaine prices have increased in Milwaukee, Racine, and Waukesha Counties; in Milwaukee, for example, a kilogram of cocaine that typically sold for $21,000 to $23,000 in June 2008 increased to as much as $32,000 in August 2008. Additionally, cocaine prices have increased significantly in Racine County, where an ounce of cocaine increased from approximately $600 in June 2008 to as much as $900 in August 2008. Law enforcement officials report that cocaine purity has decreased in some areas of the HIDTA region, an indication that distributors are cutting the drug in order to stretch supplies and sustain profits. Despite lower availability and slightly higher retail prices, cocaine traffickers were still able to purchase sufficient quantities of the drug for distribution in the region.

Heroin, primarily South American (SA) heroin, poses a serious threat to the region. Heroin abuse and related deaths have increased in the HIDTA region. Young Caucasians in suburban areas are increasingly abusing heroin; many of these heroin abusers initiated opioid abuse through controlled prescription narcotics and later switched to heroin, which typically is lower in price. According to the Milwaukee County Medical Examiner, the number of heroin-related deaths in Milwaukee County increased from 2004 (13) to 2007 (36). Law enforcement officials attribute much of the increase in heroin-related deaths to the wide range in purity (16% to 89%) for heroin available in the HIDTA region.

Marijuana is widely available and abused in the region. Most marijuana available in the region is commercial-grade Mexican marijuana; however, law enforcement officials report that the availability of high-potency marijuana has increased significantly in Kenosha, Milwaukee, and Racine Counties. Marijuana produced from locally grown cannabis is also available. Indoor grow sites typically are operated by Caucasian independent dealers who produce the drug for personal use or limited local distribution. Additionally, law enforcement officials report that the number of outdoor grows has increased, particularly in Kenosha and Racine Counties; most of these grows are operated by Hispanics.

A variety of other illicit drugs also pose substantial threats to the region. Diverted CPDs, particularly prescription opioids, are commonly abused in the region. According to the Milwaukee County Medical Examiner, the number of controlled prescription opioid-related deaths in Milwaukee County increased 28 percent from 2003 (133) through 2007 (170); most were attributed to methadone, morphine, and oxycodone. Many abusers of controlled prescription opioids eventually switch to heroin because of the relatively high cost of CPDs compared with heroin. Additionally, benzodiazepines are also abused commonly in the region; the number of benzodiazepine-related deaths in Milwaukee County increased significantly from 2003 (58) to 2007 (155). MDMA (3,4-methylenedioxymethamphetamine, also known as ecstasy) is commonly transported into the area from California and Canada. Methamphetamine availability and abuse in the region are limited.

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Drug Trafficking Organizations

Numerous DTOs in the Milwaukee HIDTA region supply illicit drugs to street gangs and criminal groups that dominate retail-level drug distribution in the area. Mexican DTOs supply wholesale quantities of powder cocaine and commercial-grade marijuana to Hispanic and, to a lesser extent, African American dealers in the region for local distribution. Hispanic distributors on the south side of Milwaukee receive wholesale shipments of powder cocaine and marijuana from Mexican DTOs in Chicago, Mexico, and sources along the Southwest Border. African American distributors on the north side of Milwaukee have less direct connections to Mexican DTOs and usually receive large drug shipments from African American and Hispanic street gangs and criminal groups in Chicago and from Hispanic distributors on the south side of Milwaukee. Dominican and Nigerian DTOs based in Chicago supply heroin and powder cocaine to local criminal groups and independent dealers in the region. Asian DTOs based in Canada supply wholesale shipments of high-potency marijuana and MDMA to street gangs and independent dealers for local distribution in the region; Asian DTOs based along the West Coast supply high-potency marijuana, MDMA, and smaller, less frequent shipments of powder cocaine to local distributors in the region.

Hispanic street gangs are the primary retail-level distributors of powder cocaine, marijuana, and limited amounts of crack cocaine on the south side of Milwaukee. Hispanic gangs such as Latin Kings and Mexican Posse are well-organized, operate under a hierarchical structure, and have established rules and guidelines. Their cohesiveness and tightly knit structure make members reluctant to cooperate with law enforcement during investigations of other gang members, including those of rival gangs. Many gang members are first- and second-generation immigrants who have familial ties in Mexico; fear of reprisal against these family members facilitates gang allegiance and fosters uncooperative relationships with law enforcement. Despite the reluctance of gang members to cooperate with law enforcement officers, recent investigations have resulted in the successful removal of Hispanic gang members who were distributing illicit drugs on the south side of Milwaukee.

African American street gangs are the predominant retail-level distributors of cocaine and marijuana on the north side of Milwaukee. They convert powder cocaine to crack, generally at stash houses in half-kilogram quantities at a time. Additionally, the Milwaukee Police Department reports that African American street gangs are distributing MDMA on the north side of Milwaukee. Gangster Disciples and Vice Lords, with connections to Chicago-based gangs of the same names, distribute drugs on the north side of the city; however, many local gangs are also active in drug distribution on the north side and are often named after streets or neighborhoods where the members grew up or where they currently operate. Typically, these gangs are loosely organized, without a hierarchical structure. If arrested, African American gang members generally are more willing than Hispanic street gang members to cooperate with law enforcement investigators in providing information about other members.

Asian street gangs, primarily Vietnamese, Laotian, and Hmong, distribute high-potency marijuana and MDMA in the Milwaukee HIDTA region; they also distribute limited quantities of powder cocaine. The high-potency marijuana and MDMA that these groups distribute is generally supplied to them by Asian traffickers from Canada and the West Coast of the United States. Asian traffickers from California usually supply the powder cocaine that these groups distribute. Asian street gangs operating in the region are tight-knit groups with connections to national-level Asian DTOs; they typically prefer to establish relationships and trust prior to working with individuals outside their group.

Outlaw motorcycle gangs (OMGs) distribute various illicit drugs in the HIDTA region, including cocaine, heroin, marijuana, and methamphetamine. In addition to drug distribution, they also engage in criminal activities such as assault, burglary, fraud, money laundering, prostitution operations, robbery, and weapons violations. Outlaws Motorcycle Club is the largest and most active OMG operating in the region; it is a nationally affiliated, structured organization with a chain of command, including a president, vice president, and other officers.

Members of DTOs, criminal groups, and street gangs use a variety of communication methods to conduct their drug operations. Contracted cellular phones; two-way, direct-connect phones; and Blackberries are commonly used by drug distributors; however, the use of "disposable" communication equipment is increasing. Street gang members and other drug distributors in the HIDTA region are increasingly using prepaid cellular phones, which can be purchased at a low cost and with relative anonymity, factors that result in frequent disposal of the phones and circumvention of law enforcement communication intercepts. Additionally, some street gang members use social networking Internet sites such as MySpace, Facebook, and BLNK as well as personal web pages to communicate and boast about their gang membership and related activities.

Footnote

1. National Drug Threat Survey (NDTS) data for 2009 cited in this report are as of February 12, 2009. NDTS data cited are raw, unweighted responses from federal, state, and local law enforcement agencies solicited through either the National Drug Intelligence Center (NDIC) or the Office of National Drug Control Policy (ONDCP) High Intensity Drug Trafficking Area (HIDTA) program. Data cited may include responses from agencies that are part of the NDTS 2009 national sample and/or agencies that are part of HIDTA solicitation lists.

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