U.S. Department of Justice
National Drug Intelligence Center
Los Angeles HIDTA Drug Market Analysis 2010
May 2010

Abuse

Methamphetamine is the principal drug of abuse in the Los Angeles HIDTA region. Preliminary data from the California Outcomes Measurement System indicate that although the number of methamphetamine-related treatment admissions to publicly funded facilities in the HIDTA region decreased 32 percent from 2007 to 2009, admissions for methamphetamine were significantly higher than that for any other illicit drug. (See Table 5.) Marijuana was the second most popular drug of abuse during that same period. Although the number of heroin-related treatment admissions declined annually during this period, it is expected that such admissions will increase in the coming year as OxyContin abusers switch to cheaper and more readily available heroin. After remaining relatively stable for several years, the number of cocaine-related treatment admissions in the Los Angeles HIDTA region decreased 29 percent from 2007 to 2009.

Table 5. Treatment Admissions in the Los Angeles HIDTA Region, by Primary Drug of Admittance, 2007-2009*

Source: California Outcomes Measurement System.
*These are admission counts by drug type for the LA HIDTA region. These are preliminary 2009 data as of March 3, 2010.

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Illicit Finance

Bulk cash smuggling is the primary method used by Mexican DTOs and other criminal groups to physically move drug proceeds into and from the Los Angeles HIDTA region. Bulk cash seizures in Southwest Border states that originated in the LA HIDTA region increased almost 24 percent in 2009 ($126,803,695) compared with 2008 ($102,633,167). Illicit drug proceeds generated throughout the rest of the United States also are subsequently transported to the region for consolidation by Mexican traffickers who either physically or electronically send them to Mexico to be laundered.

Mexican and Asian DTOs also exploit traditional financial institutions and money services businesses (MSBs) in the Los Angeles HIDTA region to electronically transfer drug proceeds to international locations, including Mexico and South America. These MSBs are located within the traffickers' own communities throughout the HIDTA region. Some traffickers transfer funds using small, local businesses or commercial businesses such as Western Union; others maintain private transmittal businesses to further their criminal enterprises.

Some illicit funds are laundered through the Black Market Peso Exchange (BMPE). In a typical BMPE exchange, Colombian merchants purchase U.S. drug dollars in the United States from Colombian traffickers in Colombia. The merchants pay the traffickers with Colombian pesos. Agents or money brokers in the United States use the U.S. drug proceeds to pay for goods on behalf of the Colombian merchants. The goods are then transported to South America, where they are sold on the black market.

UNCLASSIFIED

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