Pseudoephedrine smurfing has become increasingly organized and widespread in California, particularly since 2007, fueling an increase in the number of large-scale meth labs in the state. Among the increased number of large-scale labs are those operated by Mexican criminal groups that have relocated to California from Mexico since 2007. Mexican criminal groups and some independent operators are increasingly acquiring bulk quantities of pseudoephedrine through smurfing. Despite strong efforts by law enforcement to curtail smurfing, there is no indication that this practice will decline in the near term. In fact, pseudoephedrine acquired through smurfing in California in 2009 was sent in bulk to meth producers in Mexico, an indication that some criminal groups in Mexico still find it easier to acquire pseudoephedrine through smurfing in California than from other sources.
Pseudoephedrine smurfing increased significantly in California in 2008 and early 2009. The incidence of individuals and criminal groups organizing pseudoephedrine smurfing operations that supply pseudoephedrine to California-based meth producers has increased throughout California. These smurfing operations began to gain prominence in late 2007, when pseudoephedrine availability and meth production decreased in Mexico. For instance, in October 2007, a Fresno County investigation revealed that a couple had been conducting daily precursor chemical smurfing operations, soliciting homeless individuals to travel from store to store to purchase pseudoephedrine. In exchange, the couple paid each person approximately $30 and sometimes gave the individuals alcohol. Evidence seized from the couple’s vehicle included packages of pseudoephedrine, pharmacy listings torn from an area telephone directory, and several cellular telephones. Similar smurfing operations increased in 2008 and have continued at high levels in 2009. In fact, law enforcement officials in 21 large California cities report that pseudoephedrine smurfing increased in their areas in 2008 and 2009.

Meth production in California-based meth labs has increased since 2007 because of pseudoephedrine supplied to producers through organized smurfing.
Large-scale meth production by Mexican criminal groups increased in California in 2008 and early 2009 as many meth producers in Mexico relocated to California, most likely because pseudoephedrine had become more available to some producers through smurfing in California than it was in Mexico. The rise in large-scale meth production is evidenced by increased meth superlab and dump site seizures. NSS data indicate that the number of superlabs seized in California increased from 10 in 2007 to 15 in 2008. Moreover, the proportion of larger meth labs (those capable of producing 20 or more pounds of meth) increased during that period from 2 of 10 superlabs in 2007 to 5 of 15 in 2008. Keeping pace with 2008 seizures, 7 superlab seizures were reported to NSS for California in 2009 (through May 26), 5 of them capable of producing 20 or more pounds of meth.
According to Central Valley California High Intensity Drug Trafficking Area reporting, the meth labs operating in that area, the primary large-scale meth production area in the United States, are producing meth with pseudoephedrine acquired primarily through California-based smurfing operations. In fact, the Fresno and Stanislaus/San Joaquin Methamphetamine Task Forces report that officers at lab sites commonly find evidence of large-scale and organized smurfing, including pseudoephedrine product price lists, store receipts, coupons for pseudoephedrine products, pseudoephedrine product packaging, paper shredders, gallon-size freezer bags, and 5-gallon plastic buckets filled with various commercial brands of pseudoephedrine tablets.


In addition, officers frequently discover trash bags full of pseudoephedrine blister packs and empty bags containing residue from pseudoephedrine tablets at laboratory dump sites in their area, further evidence of large-scale pseudoephedrine smurfing. By 2009, California pseudoephedrine smurfing had increased to the extent that some Los Angeles area smurfers not only were supplying pseudoephedrine for large-scale production in California, but also were supplying pseudoephedrine to meth producers in Mexico.
The actual number of meth labs operating in California is unknown and may be much higher than the laboratory seizure number, which has increased, suggests. Law enforcement reporting indicates that meth labs are becoming more difficult to detect, not because there are fewer labs, but because lab operators have adapted to law enforcement pressure and improved their lab concealment methods by operating in remote areas. As a result, there may be significantly more large-scale production at undetected meth labs than the laboratory seizure data indicate.
Source...http://www.usdoj.gov/ndic/pubs36/36407/index.htm
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