Pennsylvania: DEA’s Presence Drug Threats and Trends

1. DEA Philadelphia Field Division March 2019 Pennsylvania: DEA’s Presence Drug Threats and Trends UNCLASSIFIED

2. Overview • DEA in PA; intelligence program • Drug Threats • US • PA • Emphasis on opioids (OD trends, Rx opioids, CPDs, heroin, fentanyl/FRSs • Notable resources UNCLASSIFIED

3. DEA Philadelphia • Offices: Philadelphia, Pittsburgh, Allentown, Harrisburg, Scranton, Wilmington, Dover • 108 Special Agents • 85 Task Force Officers – 54 state/local agencies • Diversion: Tactical Diversion Squads, Regulatory UNCLASSIFIED

4. DEA Philadelphia UNCLASSIFIED

5. DEA Philadelphia • Intelligence Program - 21 DEA Intelligence Analysts • Field Intelligence Manager – Philadelphia • Division Intelligence Group – Philadelphia (9); HSI Cyber • Pittsburgh Intelligence Group – Pittsburgh (4) • HIDTA Investigative Support Center/Research and Analysis • Collection Manager – Philadelphia • Resident Office support (5) • National Guard Counterdrug Program; contract support UNCLASSIFIED

6. Intelligence Analysis • What does a DEA Intel Analyst do? • Tactical Intelligence • Short turn around; direct response and result • Investigative Intelligence • Short/long term; direct support to investigators and prosecutors • Strategic Intelligence • Paint the broad picture; direct resource and policy decisions UNCLASSIFIED

7. Intelligence Analysis • Tactical and Investigative Support • Identify targets and co-conspirators • Who is doing what, where, and how? • Identify methods and patterns of communication • Telephones, email, social media, internet, phone Apps • Identify connections to regional/national/international sources of supply • Assist with affidavits for monitoring telecommunications • Testify in court UNCLASSIFIED

8. Intelligence Analysis • Strategic Analysis • Collection and liaison: open sources, investigations, confidential sources, law enforcement, professional, and public health sources, statistical indicators • Product line: SIRs, bulletins, intelligence reports/assessments - unclassified • Inform current threats and emerging trends • Guides policy, strategy, and resource decisions UNCLASSIFIED

9. US Drug Situation - Summary • Opioid threat remains at epidemic levels and continues rising • Controlled Prescription Drugs (CPDs) • Heroin • Fentanyl • Methamphetamine production primarily Mexico-sourced • Cocaine threat rebounding • Marijuana threat evolving • New Psychoactive Substances (NPS) marketed to larger user base • Transnational Criminal Organizations (TCOs) and domestic gangs increasingly intertwined • Billions of dollars in drug proceeds and increases in virtual currency UNCLASSIFIED

10. Transnational Criminal Organizations • Mexican TCOs • Wholesale importation and distribution • Expansive logistical infrastructure • Compartmentalized cells • Supply all major illicit drugs of abuse to Pennsylvania • Colombian TCOs • Dominance over cocaine supply • Partnership with Mexican TCOs • Representatives in many countries • Dominican TCOs • Mid-level distribution in Northeast • Self-sufficient organizations • Relationships with other TCOs UNCLASSIFIED

11. Drug Threats • Drug Threats in Pennsylvania • Evaluated based on totality of information, to include availability, threat to public health, related crime, propensity for abuse, etc. UNCLASSIFIED

12. Opioid Threats What we know: • Pennsylvania is in the midst of a drug abuse and overdose epidemic • Prescription opioid abuse has fueled heroin abuse • Abuse of prescription opioids, heroin, and fentanyl has led to the overdose deaths of more than 13,000 Pennsylvanians between 2015 and 2017 • Pennsylvania among states with the highest rates of overdose death UNCLASSIFIED

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14. Overdose Trends • CDC • National • 2017: 70,237 drug-related overdose deaths (21.7 per 100,000 population) • 2/3 opioid-involved (14.9 per 100,000); 44% increase since 2015 • Synthetic opioids (e.g. fentanyl/FRS) present in 60% of opioid deaths (29% in 2015); mentions tripled since 2015 • Pennsylvania • 2017: Highest number of drug-related overdose deaths in US • 44.3 drug-related overdose deaths per 100,000 – third highest (W VA, OH) UNCLASSIFIED

15. Pennsylvania Overdose Trends • 2017: 5,456 drug-related overdose deaths in Pennsylvania, 65 percent increase from 2015 • Fentanyl and fentanyl-related substances (FRS): most frequently identified at toxicology (~85 percent); five-fold increase since 2015 • Heroin: second most frequently reported drug (~38 percent); nearly 30% decrease since 2015 UNCLASSIFIED

16. Percentage Change in Drug-Related Overdose Deaths – PA, 2015-2017 UNCLASSIFIED

17. Percent of Drug-Related Overdose Deaths per Year by Drug Presence – PA, 2015-2017 UNCLASSIFIED

18. 2015Most Frequently Reported Drug Category UNCLASSIFIED

19. 2016Most Frequently Reported Drug Category UNCLASSIFIED

20. 2017Most Frequently Reported Drug Category UNCLASSIFIED

21. Pennsylvania Overdose Trends • 2018: data NOT finalized • Overall: appears trending downward • Fentanyl: most frequently reported drug in toxicology UNCLASSIFIED

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24. How did we get here? UNCLASSIFIED

25. How did we get here? • Heroin a consistent problem over time, mostly urban • Emphasis on pain relief – prescribe CPDs (oxycodone/hydrocodone) • Move to heroin use – high-purity white heroin produced in Mexico • DTOs seek new markets, smaller urban and more rural • Fentanyl re-introduced and exacerbates problem; diverse sources and trafficking; better quality product on street; overdoses • Fentanyl-related substances – to be “legal” • Next: counterfeit pills, stimulants (cocaine, meth)? UNCLASSIFIED

26. CPD Distribution Source: NSDUH UNCLASSIFIED

27. Oxycodone and Hydrocodone Pills Dispensed in PA Prescription Opioid Availability 275 million 259 million 170 million 146 million UNCLASSIFIED

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29. Rx Opioids • Oxycodone, primarily 30mg and 10mg, are most frequently sought for non-medical use • Initially sourced from friends, relatives, etc. • Obtained via complicit doctors, fraudulent prescriptions, street purchases • Purchased for approx. $1 per milligram on street UNCLASSIFIED

30. Rx Opioids • Progress • Decreased availability of prescription opioids • New PA PDMP (2016), new prescribing regulations • DEA oversight of registrants • Prescriber education/user prevention initiatives • Decreased number of new Rx opioid abusers (NDTA, 2017) UNCLASSIFIED

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33. Types of Rx Opioids Seized in PA UNCLASSIFIED

34. Heroin • Abundance of Heroin • Change in Production/Source • Late 2000s – decrease in cocaine movement by MX TCOs in order to increase heroin trafficking and profit • Early 2010s - Change in heroin production from SA to MX • Need to recoup lost revenue from marijuana sales • Response to US demand UNCLASSIFIED

35. Mexico Heroin Production and Poppy Cultivation UNCLASSIFIED Source: U.S. Government Estimates

36. Origins of US Heroin Eastern US Western US UNCLASSIFIED Source: DEA DMP

37. Heroin • White Heroin • Impact on purity and potential for adulteration • Impact on Pennsylvania • Established heroin user base • Demand for highly pure product • Highest purity heroin in the country for 20 years • Wholesale purities >90% • Retail purities from 50-90% UNCLASSIFIED

38. If things weren’t complicated enough…. UNCLASSIFIED

39. Fentanyl • Fentanyl • Introduced into illicit U.S. drug supply in 2013-2014 (after previous surge in 2006-2007) • 30-50x more potent than heroin; 50-100x more potent than morphine • Primary sources of supply – Mexico and China UNCLASSIFIED

40. Fentanyl • Two primary production areas: • China supplies precursor chemicals and finished product • Mexico manufacturing fentanyl in clandestine labs UNCLASSIFIED

41. Fentanyl Production/Trafficking China Mexico • Lab manufactured precursors/finished products • Mail and parcel services • Low average weight • Grams, < one kilogram • Envelopes • High average purity - 90% or higher • Independent procurement or organizations (dark web) • Precursors from China; clandestine “labs” finish • Privately-operated vehicles at SWBPOEs • High average weight • Multi-kilogram, polydrug loads • Low average purity • 10% or lower • Not mixed with other CSs at wholesale level • Mexican TCO involvement UNCLASSIFIED

42. Poppy field in Mexico Clandestine Drug Lab in Mexico UNCLASSIFIED Entirely synthetic process. No plant materials, farmers, weather, etc. Why switch from heroin production to fentanyl production?

43. It’s all about the Money UNCLASSIFIED

44. Fentanyl in 2010 • How quickly can things change? UNCLASSIFIED

45. Fentanyl in 2017 UNCLASSIFIED

46. Fentanyl • Who brings it, how does it get here, how is it packaged, how is it sold? • Mexican TCOs – traditional routes and methods • Mixed at street/mill level, not wholesale UNCLASSIFIED Wholesale heroin and fentanyl seizure (packaged/marked separately). Tied to CJNG.

47. Fentanyl • Recent Trends: • 2nd highest number of fentanyl exhibits in the country • Fentanyl/Tramadol mixture in powder (multi-kilo) and pill forms • Multi-kilogram, bulk seizures more frequently • 50 kilogram seizure in commercial air shipment in Philadelphia, 4-FIBF, 90% purity • 7 kilo seizure of fentanyl pills destined for Philadelphia • 23 kilogram seizure linked to Philadelphia, 90 kilograms + pills seized in Allentown area, 25 kilograms seized in NJ – some destined for Philadelphia • 100 pounds fentanyl/heroin seized with Bucks County processing “mill” • Fentanyl production - Pittsburgh UNCLASSIFIED

48. Fentanyl in PA in 2010 UNCLASSIFIED

49. Fentanyl in PA in 2017 UNCLASSIFIED

50. Fentanyl • Fentanyl purities • Nationwide purity of MX produced fentanyl averages 7% • 7% pure fentanyl is the equivalent of 300% pure heroin • 10% pure fentanyl found locally • Increase in openly acknowledged sales of fentanyl UNCLASSIFIED