Mexico again

I’m sure some readers are tired by now of my warnings about the situation in Mexico. Nevertheless, things continue to go from bad to worse. One hopes more and more Americans are aware of the risks they face if they go South of the border.

Unfortunately, those risks are moving North – fast. Strategic Forecasting has just published a report titled ‘When The Mexican Drug Trade Hits The Border‘. It contains alarming facts and figures about the influence of Mexican drug crime on US criminal activity. Here’s an extract.

The nature of narcotics trafficking changes as shipments near the border. As in any supply chain, shipments become smaller as they reach the retail level, requiring more people to be involved in the operation. While Mexican cartels do have representatives in cities across the United States to oversee networks there, local gangs get involved in the actual distribution of the narcotics.

While there are still many gaps in the understanding of how U.S. gangs interface with Mexican cartels to move drugs around the United States and finally sell them on the retail market, we do know some of the details of gang involvement.

Trafficking vs. Distribution

One way to think about the difference in tactics between trafficking drugs in Central America and Mexico and distributing drugs in the United States is to imagine a company like UPS or FedEx. Shipping air cargo from, say, New York to Los Angeles requires different resources than delivering packages to individual homes in southern California. Several tons of freight from the New York area can be quickly flown to the Los Angeles area. But as the cargo gets closer to its final destination, it is broken up into smaller loads that are shipped via tractor trailer to distribution centers around the region, and finally divided further into discrete packages carried in parcel trucks to individual homes.

. . .

It is a numbers game for drug traffickers and distributors alike, since it is inevitable that smugglers and shipments will be intercepted by law enforcement somewhere along the supply chain. Those whose loads are interdicted more often struggle to keep prices low and stay competitive. On the other hand, paying heavy corruption fees or taking extra precautions to ensure that more of your product makes it through also raises the cost of moving the product. Successful traffickers and distributors must be able to strike a balance between protecting their shipments and accepting losses. This requires a high degree of pragmatism and rationality.

Local Gangs

While the Mexican cartels do have people in the United States, they do not have enough people so positioned to handle the increased workload of distributing narcotics at the retail level. A wide range of skill sets is required. Some of the tactics involved in moving shipments across the border require skilled workers, such as pilots, while U.S. gang members along the border serve as middlemen and retail distributors. Other aspects of the operation call for people with expertise in manipulating corrupt officials and recruiting human intelligence sources, while a large part of the process simply involves saturating the system with massive numbers of expendable, low-skilled smugglers who are desperate for the money.

. . .

Street gangs are present in virtually every U.S. city and town of significant size along the border and are obvious pools of labor for distributing narcotics once they hit the United States. The largest of these street gangs are MS-13 and the Mexican Mafia. MS-13 has an estimated 30,000 to 50,000 members worldwide, about 25 percent of whom are in the United States. MS-13 is unique among U.S. gangs in that it is involved in trafficking narcotics through Central America and Mexico as well as in distributing narcotics in the United States. The Mexican Mafia works with allied gangs in the American Southwest to control large swaths of territory along both sides of the U.S.-Mexican border. These gangs are organized to interact directly with traffickers in Mexico and oversee transborder shipments as well as distribution inside the United States.

Prison gangs such as the Barrio Azteca and the Texas Syndicate reach far beyond the prison fence. Membership in a prison gang typically means that, at one point, the member was in prison, where he joined the gang. But there is a wide network of ex-prisoner gang members on the outside involved in criminal activities, including drug smuggling, which is one of the most accessible ways for a gang member to make money when he is released from prison.

Operating underneath the big gang players are hundreds of smaller city gangs in neighborhoods all along the border. These gangs are typically involved in property theft, drug dealing, turf battles and other forms of street crime that can be handled by local police. However, even these gangs can become involved in cross-border smuggling; for example, the Wonderboys in San Luis, Ariz., are known to smuggle marijuana, methamphetamine and cocaine across the border.

Gangs like the Wonderboys also target illegal immigrants coming across the border and steal any valuable personal items or cash they may have on them. The targeting of illegal immigrants coming into the United States is common all across the border, with many gangs specializing in kidnapping newly arrived immigrants and demanding ransoms from their families. These gangs are responsible for the record level of kidnapping reported in places like Phoenix, where 368 abductions were reported in 2008. Afraid to notify law enforcement out of a fear of being deported, many families of abducted immigrants somehow come up with the money to secure their family member’s release.

Drug distribution is by far the most lucrative illicit business along the border, and the competition for money leads to a very pragmatic interface between the U.S. border gangs and the drug cartels in Mexico. Handoffs from Mexican traffickers to U.S. distributors are made based upon reliability and price. While territorial rivalries between drug traffickers have led to thousands of deaths in Mexico, these Mexican rivalries do not appear to be spilling over into the U.S. border gangs, who are engaged in their own rivalries, feuds and acts of violence. Nor do the more gruesome aspects of violence in Mexico, such as torture and beheadings, although there are indications that grenades that were once part of cartel arsenals are finding their way to U.S. gangs. In dealing with the Mexican cartels, U.S. gangs — and cartels in turn — exhibit no small amount of business pragmatism. U.S. gangs can serve more than one cartel, which appears to be fine with the cartels, who really have no choice in the matter. They need these retail distribution services north of the border in order to make a profit.

Assassins’ Gate

Because the drug distribution network in the United States is so large, it is impossible for any one criminal organization to control all of it. U.S. gangs fill the role of middleman to move drugs around, and they are entrusted with large shipments of narcotics worth millions of dollars. Obviously, the cartels need a way to keep these gangs honest.

One effective way is to have an enforcement arm in place. This is where U.S.-based assassins come in. More tightly connected to the cartels than the gangs are, these assassins are not usually members of a gang. In fact, the cartels prefer that their assassins not be in a gang so that their loyalties will be to the cartels, and so they will be less likely to have criminal records or attract law enforcement attention because of everyday gang activity.

Cartels invest quite a bit in training these hit men to operate in the United States. Often they are trained in Mexico, then sent back across to serve as a kind of “sleeper cell” until they are tapped to take out a delinquent U.S. drug dealer. The frequency and ease with which Americans travel to and from Mexico covers any suspicion that might be raised.

The Gaps

… there is still so much we do not know. The exact nature of the relationship between Mexican cartels and U.S. gangs is very murky, and it appears to be handled on such an individual basis that making generalizations is difficult. Another intelligence gap is how deeply involved the cartels are in the U.S. distribution network. As mentioned earlier, the network expands as it becomes more retail in nature, but the profit margins also expand, making it an attractive target for cartel takeover. Finally, while we know that gangs are instrumental in distributing narcotics in the United States, it is unclear how much of the cross-border smuggling they control. Is this vital, risky endeavor completely controlled by cartels and gatekeeper organizations based in Mexico, or do U.S. gangs on the distribution side have more say?

There’s lots more at the link. It makes for very disturbing, but highly recommended reading.

Peter