Does caffeine lead to cocaine use? Obviously not. But if caffeine were outlawed, a black market would emerge. Drug gangs, which are highly skilled at operating outside of the law and have pre-existing distribution channels, would begin trafficking illegal caffeine pills. If people were forced to use black market distribution chains to obtain a mild stimulant, such as caffeine, they would almost certainly be more likely to opt for a stronger stimulant, such as cocaine.
Either people deal with drug dealers, or they don’t. If they do, the dealers are likely to try to upsell them on other products. Drug dealers are like any other salespeople: They want to obtain the highest profit margin possible. Cocaine sells at a much higher margin than caffeine pills would, even if caffeine were outlawed. Even if most people resisted the dealers’ insistence that cocaine would provide a better experience, some non-drug users would try it; some would even become addicted. Caffeine use would likely decline, while use of cocaine and other illicit drugs would increase.
The above hypothetical is analogous to the prohibition of marijuana. People often refer to marijuana as a gateway drug that leads to people using stronger drugs. Yet there is no intrinsic gateway effect from marijuana. But once you’re buying marijuana on the black market, it isn’t much of a step to purchase psychedelic mushrooms, cocaine or ecstasy. Once you have a dealer, he or she will try to sell you other drugs. Marijuana isn’t a gateway drug; but black market marijuana is.
Legalizing marijuana would seriously impact the bottom line of many criminal enterprises, as it accounts for around half of global drug gang profits. There’s no doubt these gangs would try to make up for this by pushing the drugs that remain illegal. However, legalized marijuana would disrupt the entire black market, since dealers would no longer be able to lure customers in by selling them weed, only to sell them something else later. They would have a much more difficult time engaging customers to begin with. And if dealing becomes unprofitable, gangs will have a hard time finding dealers to buy their wholesale products. While marijuana use would likely increase (though it actually decreased in Portugal after decriminalization), gang profits would decrease and the availability of other drug would go down as well.
One might argue from the above logic that all drugs should be legalized. That would be simplistic. Some drugs may pose such a threat to users and society that the trade-off of allowing gangs to profit off them from selling a small amount is preferable to legalizing them, even if that only means a marginal increase in usage. Drugs such as crystal meth fall into this category. A true harm-reduction approach to drugs would weigh both the costs of drug usage, and the cost of prohibition. Both can be substantial. We need a rational approach to making these calculations.
One way to go about this would be to create three categories of drugs. The first would be milder substances that are somewhat harmful, but are also widely used. Hard liquor, cigarettes and marijuana are substances that would occupy this category. The harm from the substances is less than the destruction resulting from prohibition. These drugs should be restricted to adult use and should carry specific excise taxes. The second category would include drugs that can be very harmful to users, but rarely fatal, and rarely cause significant externalities. The prime example is cocaine. The harm caused by cocaine rarely extends beyond users and their families. These drugs should be decriminalized, so that problem users can seek treatment without fear of legal repercussions.
The third category would include drugs that are extremely harmful to the users and society as a whole, such as crystal meth, and should remain illegal. While the sale of these drugs would continue to line the pockets of drug gangs, the harm from even a modest increase in people using them would be substantial. Gangs will always exist. But strangling their most benign revenue sources would reduce their ability to finance distribution of the worst drugs, as well as other evils, such as human trafficking.
Drug policy is often considered the domain of morality. It shouldn’t be. Issues of personal morality should not be legislated. But when public safety is at stake, it can make sense to crack down on certain drugs. A utilitarian, harm reduction approach to drug policy would be a vast improvement over the reckless, moralistic approach we have now.
Thanks to Steve Lafleur.
Sunday, July 13, 2014
Update on #GameOverZeus and #Cryptolocker Disruption
The Justice Department filed a status report with the United States District Court for the Western District of Pennsylvania updating the court on the progress in disrupting the GameOver Zeus botnet and the malicious software known as Cryptolocker. The disruption began in late May, when the Justice Department implemented a series of Court-authorized measures to neutralize GameOver Zeus and Cryptolocker—two of the most sophisticated and destructive forms of malicious software in existence.
In the status report, the Justice Department informed the court that the technical and legal measures undertaken to disrupt GameOver Zeus and Cryptolocker have proven successful, and that significant progress has been made in remediating computers infected with GameOver Zeus.
The Justice Department reported that all or nearly all of the active computers infected with GameOver Zeus have been liberated from the criminals’ control and are now communicating exclusively with the substitute server established pursuant to court order. The Justice Department also reported that traffic data from the substitute server shows that remediation efforts by Internet service providers and victims have reduced the number of computers infected with GameOver Zeus by 31 percent since the disruption commenced.
The Justice Department also reported that Cryptolocker has been neutralized by the disruption and cannot communicate with the infrastructure used to control the malicious software. As a result, Cryptolocker is effectively non-functional and unable to encrypt newly infected computers.
Computer users who believe they may be infected with GameOver Zeus are encouraged to visit the Department of Homeland Security’s dedicated GameOver Zeus webpage, which is located at www.us-cert.gov/gameoverzeus. Among other resources, the webpage includes links to tools from trusted vendors that can detect and remove the GameOver Zeus infection.
In the status report, the Justice Department informed the court that the technical and legal measures undertaken to disrupt GameOver Zeus and Cryptolocker have proven successful, and that significant progress has been made in remediating computers infected with GameOver Zeus.
The Justice Department reported that all or nearly all of the active computers infected with GameOver Zeus have been liberated from the criminals’ control and are now communicating exclusively with the substitute server established pursuant to court order. The Justice Department also reported that traffic data from the substitute server shows that remediation efforts by Internet service providers and victims have reduced the number of computers infected with GameOver Zeus by 31 percent since the disruption commenced.
The Justice Department also reported that Cryptolocker has been neutralized by the disruption and cannot communicate with the infrastructure used to control the malicious software. As a result, Cryptolocker is effectively non-functional and unable to encrypt newly infected computers.
Computer users who believe they may be infected with GameOver Zeus are encouraged to visit the Department of Homeland Security’s dedicated GameOver Zeus webpage, which is located at www.us-cert.gov/gameoverzeus. Among other resources, the webpage includes links to tools from trusted vendors that can detect and remove the GameOver Zeus infection.
Organized Crime Groups Exploit "Entrepreneur" Visa Progam
Ministers are tightening up the "entrepreneur" visa scheme after checks uncovered a new scam involving potentially thousands of bogus applications.
The Home Office disclosed the number of foreigners applying for the right to stay in this country under the entrepreneur scheme rocketed from 118 in 2009 to just under 10,000 last year.
It was unclear when ministers were alerted to the rapid rise in numbers, but a Home Office spokesman confirmed two thirds of the applicants – more than 3,000 people – were granted a visa.
The Government believes organised crime gangs have been involved in the scam.
It is understood gangs would charge applicants to temporarily lend the £50,000 required to demonstrate they had the capital to invest in business schemes.
The surge in entrepreneur visa applications coincided with ministers' decision to close another visa route – for "post study work" by students who had completed their courses – in 2012.
Applicants denied access to those visas are now believed by the Government to have fraudulently switched to the entrepreneur route.
Immigration officials uncovered the scam after comparing their files with tax records which showed many of the so-called "entrepreneurs" had been working full-time for employers after obtaining their visas, sometimes in low-skilled jobs.
Under the terms of an entrepreneur visa, the holder is only allowed to work for their own business and not take employed work elsewhere.
James Brokenshire, the immigration minister, said: “This government is building an immigration system that is fair to British citizens and legitimate migrants and tough on those who abuse the system and flout the law.
“Our reforms have cut net non-EU migration to levels not seen since the 1990s and slashed overall net migration by a third since its peak under the last government. “And we will not hesitate to take firm action to protect our immigration system further – particularly when there is evidence of criminals targeting what they think are weaknesses in the rules.”
Applicants will now have produce more evidence of their business activities to secure an entrepreneur visa and other restrictions will be placed on switching to the visa from other immigration routes, the spokesman said.
Wide-ranging allegations about student visa fraud were made in a BBC Panorama documentary broadcast in February.
Thanks to David Barrett.
The Home Office disclosed the number of foreigners applying for the right to stay in this country under the entrepreneur scheme rocketed from 118 in 2009 to just under 10,000 last year.
It was unclear when ministers were alerted to the rapid rise in numbers, but a Home Office spokesman confirmed two thirds of the applicants – more than 3,000 people – were granted a visa.
The Government believes organised crime gangs have been involved in the scam.
It is understood gangs would charge applicants to temporarily lend the £50,000 required to demonstrate they had the capital to invest in business schemes.
The surge in entrepreneur visa applications coincided with ministers' decision to close another visa route – for "post study work" by students who had completed their courses – in 2012.
Applicants denied access to those visas are now believed by the Government to have fraudulently switched to the entrepreneur route.
Immigration officials uncovered the scam after comparing their files with tax records which showed many of the so-called "entrepreneurs" had been working full-time for employers after obtaining their visas, sometimes in low-skilled jobs.
Under the terms of an entrepreneur visa, the holder is only allowed to work for their own business and not take employed work elsewhere.
James Brokenshire, the immigration minister, said: “This government is building an immigration system that is fair to British citizens and legitimate migrants and tough on those who abuse the system and flout the law.
“Our reforms have cut net non-EU migration to levels not seen since the 1990s and slashed overall net migration by a third since its peak under the last government. “And we will not hesitate to take firm action to protect our immigration system further – particularly when there is evidence of criminals targeting what they think are weaknesses in the rules.”
Applicants will now have produce more evidence of their business activities to secure an entrepreneur visa and other restrictions will be placed on switching to the visa from other immigration routes, the spokesman said.
Wide-ranging allegations about student visa fraud were made in a BBC Panorama documentary broadcast in February.
Thanks to David Barrett.
Friday, July 11, 2014
Quacy L. Francis Sentenced to 22 Years in Prison for Cocaine Distribution
A Shreveport man was sentenced to 264 months in prison and eight years of supervised release for his role in a Shreveport cocaine distribution conspiracy.
Quacy L. Francis, 38, of Shreveport was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute cocaine base. According to evidence presented at the guilty pleas in January 2014, Francis and others conspired to possess with intent to distribute cocaine base in the Shreveport area from November 2012 to May 2013. The FBI conducted three controlled purchases of cocaine, both crack and powder, from Francis. Francis purchased cocaine from Michael T. Johnson, 40, of Shreveport, and others to be distributed in the Shreveport area. Lemarcus Miller, 32, and Demarkus Miller, 32, both from Shreveport, were also part of the conspiracy.
Demarkus Miller and Lemarcus Miller were each sentenced to 60 months in prison and four years of supervised release on March 27, 2014 and May 16, 2014 respectively. Johnson was sentenced to 120 months in prison and eight years of supervised release on April 28, 2014.
Quacy L. Francis, 38, of Shreveport was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute cocaine base. According to evidence presented at the guilty pleas in January 2014, Francis and others conspired to possess with intent to distribute cocaine base in the Shreveport area from November 2012 to May 2013. The FBI conducted three controlled purchases of cocaine, both crack and powder, from Francis. Francis purchased cocaine from Michael T. Johnson, 40, of Shreveport, and others to be distributed in the Shreveport area. Lemarcus Miller, 32, and Demarkus Miller, 32, both from Shreveport, were also part of the conspiracy.
Demarkus Miller and Lemarcus Miller were each sentenced to 60 months in prison and four years of supervised release on March 27, 2014 and May 16, 2014 respectively. Johnson was sentenced to 120 months in prison and eight years of supervised release on April 28, 2014.
Thursday, July 10, 2014
Kai Bird, author of The Good Spy: The Life and Death of Robert Ames, Appears Tonight on Crime Beat Radio
Kai Bird, author of The Good Spy: The Life and Death of Robert Ames, Appears Tonight on Crime Beat Radio.
April 18, 1983, a bomb exploded outside the American Embassy in Beirut, killing 63 people. The attack was a geopolitical turning point. It marked the beginning of Hezbollah as a political force, but even more important, it eliminated America’s most influential and effective intelligence officer in the Middle East – CIA operative Robert Ames. What set Ames apart from his peers was his extraordinary ability to form deep, meaningful connections with key Arab intelligence figures. Some operatives relied on threats and subterfuge, but Ames worked by building friendships and emphasizing shared values – never more notably than with Yasir Arafat’s charismatic intelligence chief and heir apparent Ali Hassan Salameh (aka “The Red Prince”). Ames’ deepening relationship with Salameh held the potential for a lasting peace. Within a few years, though, both men were killed by assassins, and America’s relations with the Arab world began heading down a path that culminated in 9/11, the War on Terror, and the current fog of mistrust
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
April 18, 1983, a bomb exploded outside the American Embassy in Beirut, killing 63 people. The attack was a geopolitical turning point. It marked the beginning of Hezbollah as a political force, but even more important, it eliminated America’s most influential and effective intelligence officer in the Middle East – CIA operative Robert Ames. What set Ames apart from his peers was his extraordinary ability to form deep, meaningful connections with key Arab intelligence figures. Some operatives relied on threats and subterfuge, but Ames worked by building friendships and emphasizing shared values – never more notably than with Yasir Arafat’s charismatic intelligence chief and heir apparent Ali Hassan Salameh (aka “The Red Prince”). Ames’ deepening relationship with Salameh held the potential for a lasting peace. Within a few years, though, both men were killed by assassins, and America’s relations with the Arab world began heading down a path that culminated in 9/11, the War on Terror, and the current fog of mistrust
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Wednesday, July 09, 2014
Two Aryan Brotherhood Gang Members Plead Guilty to Federal Racketeering Charges
Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Steven Worthey, of San Antonio, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. James Lawrence Burns, aka “Chance,” of Dallas, Texas, pleaded guilty to the same charge on July 3, 2014.
According to court documents, Worthey, Burns and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Worthey, Burns and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Worthey and Burns admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.
Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 defendants have pleaded guilty.
Former New Orleans Mayor C. Ray Nagin Sentenced for Conspiracy, Bribery, Honest Services Wire Fraud, Money Laundering, and Tax Violations
The former mayor of New Orleans, C. Ray Nagin, 58, a resident of Frisco, Texas, was sentenced to serve 120 months in prison and ordered to pay $84,264 in restitution by United States District Judge Helen G. Berrigan of the Eastern District of Louisiana for conspiracy, bribery, honest services wire fraud, money laundering and tax violations, announced the U.S. Attorney’s Office for the Eastern District of Louisiana. A preliminary order of forfeiture was signed by Judge Berrigan on May 27, 2014 in the amount of $501,200.56.
Nagin served as the Mayor of New Orleans from 2002 to 2010. A federal grand jury sitting in the Eastern District of Louisiana indicted Nagin on Jan. 18, 2013. Nagin stood trial from Jan. 27, 2014, to Feb. 12, 2014 when the jury found Nagin guilty on 20 of 21 counts in the indictment.
“Given the nature and extent of former Mayor Nagin’s criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the city and its residents,” said Special Agent in Charge Michael J. Anderson of the New Orleans Field Division of the Federal Bureau of Investigation (FBI).
“In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity,” said Chief Richard Weber, IRS-Criminal Investigation. “Today’s sentence confirms that message—public servants are elected to serve the public, not benefit from the position. No one is above the law, and IRS-Criminal Investigation will continue to investigate all financial crimes which undermine the public’s confidence in its elected officials.”
“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” said Inspector General Ed Quatreveaux for the City of New Orleans. “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre and the former mayor. NOLAOIG will continue its work to root out fraud and abuse in city operations to protect the city from those who would defraud it.”
“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family and friends,” said Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”
“Our elected officials are entrusted to place the interests of the citizens above their own,” said United States Attorney Kenneth Allen Polite Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.”
Nagin served as the Mayor of New Orleans from 2002 to 2010. A federal grand jury sitting in the Eastern District of Louisiana indicted Nagin on Jan. 18, 2013. Nagin stood trial from Jan. 27, 2014, to Feb. 12, 2014 when the jury found Nagin guilty on 20 of 21 counts in the indictment.
“Given the nature and extent of former Mayor Nagin’s criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the city and its residents,” said Special Agent in Charge Michael J. Anderson of the New Orleans Field Division of the Federal Bureau of Investigation (FBI).
“In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity,” said Chief Richard Weber, IRS-Criminal Investigation. “Today’s sentence confirms that message—public servants are elected to serve the public, not benefit from the position. No one is above the law, and IRS-Criminal Investigation will continue to investigate all financial crimes which undermine the public’s confidence in its elected officials.”
“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” said Inspector General Ed Quatreveaux for the City of New Orleans. “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre and the former mayor. NOLAOIG will continue its work to root out fraud and abuse in city operations to protect the city from those who would defraud it.”
“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family and friends,” said Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”
“Our elected officials are entrusted to place the interests of the citizens above their own,” said United States Attorney Kenneth Allen Polite Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.”
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