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New drug business opportunities and the LCN #767268
03/10/14 02:52 PM
03/10/14 02:52 PM
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Boca Raton
NNY78 Offline OP
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IMHO this country will legalize marijuana by 2018 and I'm wondering if the LCN will get in on the action if they haven't already in Colorado and Washington State. Also the rise of and then the crackdown on pill mills and pain pills has led to a huge rise in heroin use. I doubt we will see Heroin legalized in the USA in our lifetime but you never know.

Came across this online today @ http://www.thefix.com/

New York City Dealers Blending Into Upscale Neighborhoods

As the nation's so-called heroin capital, New York is seeing dealers moving to more high-class digs in order to cater to an upper-class clientele.


A week before Philip Seymour Hoffman's death propelled heroin into the spotlight of the national media, police in New York City busted a sophisticated heroin packaging and distribution mini-factory in an apartment in the Bronx. In this mini-factory, employees with coffee grinders, scoops, and scales labored 24/7 to break down bricks of heroin into thousands of hit-size baggies. Bearing such stamped brands as "Government Shutdown" and “iPhone,” over $8 million worth of heroin was seized in the raid.

The rise of these mini-factories of heroin processing and distribution is taking place behind the doors of well-to-do New York apartments. Such heroin mini-factories are a sign of an intricate distribution network focused on catering to mainstream, middle- and upper-class customers. As NYC Special Narcotics Prosecutor Bridget Brennan explained, heroin dealers want to find wealthy customers, "who are going to be with them until they die.”

Accounting for about 20 percent of the heroin the federal Drug Enforcement Administration seizes every year, New York is known as the nation's heroin capital. Heroin seizures have grown by 67 percent over the last five years while drug overdoses are now the number one accidental killer of Americans 25 to 64 years old, surpassing even traffic deaths.

The business model for heroin mills emphasizes discipline and quality control with a surprising absence of violence. Residential settings in safe neighborhoods are favored as a means of cover. In a raid by the DEA last year, a mini-factory for heroin processing was found in a newly renovated apartment in midtown Manhattan that rented for $3,800 a month.

Making up to $5,000 a week, workers have gone out of their way not to disturb neighbors, who otherwise might report them to police. James J. Hunt, the acting head of the DEA's New York office, explained that the "Drug dealers are very wary… They wouldn't want word to get out on the street about a mill. They want anonymity."

Re: New drug business opportunities and the LCN [Re: NNY78] #767270
03/10/14 03:03 PM
03/10/14 03:03 PM
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The mob in New York is big into drugs in the suburbs but there is no LCN presence in Colorado or Washington.


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Re: New drug business opportunities and the LCN [Re: IvyLeague] #767275
03/10/14 03:34 PM
03/10/14 03:34 PM
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Theres been cases in LA and colorado of street gangs and colombian cartels being involved with dispensaries in some form or another.

I think in the northeast you have a lot of dominican groups operating mills and packaging labs and then of course you have open air markets controlled by gangs and sets. There have been a few mob related oxy rings and other drugs arrests in the recent past, but nothing where you can say its an actual continuing business with them. Bartolmeo vernace was busted for heroin dealing but i don't know how big that operation was.

Re: New drug business opportunities and the LCN [Re: IvyLeague] #767280
03/10/14 03:50 PM
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NNY78 Offline OP
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Thanks Ivy and Scorcese, I was thinking though that because there was so much money to be made in the manufacturing, distributing and sale of legalized marijuana that the LCN would try to get involved on some level just like they did after prohibition.

Last edited by NNY78; 03/10/14 03:52 PM.
Re: New drug business opportunities and the LCN [Re: NNY78] #767359
03/10/14 09:11 PM
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paprincess Offline
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best way would be through the little start up company stocks... as far as hands on involvement.. for what?? do get your johnson petted/polished by a white lady?? sounds a little Mexican or black to me. whatever, I'd never get off again. blekh... I'm tired let's go to sleep... snore

Re: New drug business opportunities and the LCN [Re: paprincess] #767384
03/11/14 07:11 AM
03/11/14 07:11 AM
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NNY78 Offline OP
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Princess, I was thinking since the LCN is gradually moving toward semi legit businesses anyway that this would be a cash cow if handled properly. Since it is an all cash business at this point, because the banks aren't allowed to participate due to federal law, that there is a lot of wiggle room for extortion,skimming and tax evation. Just sayin

Re: New drug business opportunities and the LCN [Re: NNY78] #767510
03/11/14 08:53 PM
03/11/14 08:53 PM
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Ted Offline
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Originally Posted By: NNY78
Princess, I was thinking since the LCN is gradually moving toward semi legit businesses anyway that this would be a cash cow if handled properly. Since it is an all cash business at this point, because the banks aren't allowed to participate due to federal law, that there is a lot of wiggle room for extortion,skimming and tax evation. Just sayin

The Department of Justice said that banks in Colorado and Washington can loan money to legal pot growers/sellers without being prosecuted.


"I die outside; I die in jail. It don't matter to me," -John Franzese
Re: New drug business opportunities and the LCN [Re: Ted] #767525
03/11/14 11:08 PM
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If nyc or nj ever changes the laws on weed like they are in California with all the dispensaries and what not.. It could be a huge money maker. Who knows if it will happen or when.. But if it does and they start opening weed dispensaries in the tristate area like they have in los angeles it would be a great financial business move for lcn to buy up as many of the dispensaries as they possibly can.. Out here in los angeles, specifically the san fernando valley there is literally 10 of them in every 1 mile radius and they all profit huge.. Millions of dollars. It blows my mind how much money can be made owning one of those places.
Guess we will see in years to come what happens with the laws and all that. In cali they feds were hitting the dispensary owners really hard but in the last year or so they have laid off a ton and the heat is off for the time being.

Re: New drug business opportunities and the LCN [Re: Ted] #767546
03/12/14 07:28 AM
03/12/14 07:28 AM
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NNY78 Offline OP
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Ted,

Thank you for the info, however at this time banks are forbidden from processing payments via credit and debit cards so its an all cash business at this point which means there is a high likelyhood of criminal activity due to a complete lack of a paper trail.

Re: New drug business opportunities and the LCN [Re: dsbaloo] #767547
03/12/14 07:45 AM
03/12/14 07:45 AM
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NNY78 Offline OP
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dsbaloo,

I agree, my Grandfather was a small time player with the Black Hand in Northern New York/Southern Ontario back in the 20's, 30's and 40's. He was involved in untaxed alcohol, cigarettes and gambling prior to prohibition. My Grandpa shot a man that tried to steal one of the shipments of alcohol and spent 8 years in prison. After prohibition ended he encouraged my Father to open a legal beer distributership that was extremely profitable since my Grandpa was a convicted felon and could not get a liqour license.I really think we are going to see the LCN get involved in this legal marijuana business on the ground floor unless the laws are beefed up.

Re: New drug business opportunities and the LCN [Re: NNY78] #767548
03/12/14 07:55 AM
03/12/14 07:55 AM
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N.E. Philly/Florida
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The mafia guys would have a field day with legal dispensaries. All they have to do is have a front man like they always do.

One dispenserary alone I think generates in the millions in taxes In one year alone. So do the math. If LCN could get involved with a couple of them it would be a huge cash cow.


"My uncle(Nicky Scarfo) always told me, you have to use your brains in this thing, and you always have to use the gun." -"crazy" Phil Leonetti-
Re: New drug business opportunities and the LCN [Re: PhillyMob] #767550
03/12/14 08:15 AM
03/12/14 08:15 AM
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NNY78 Offline OP
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Philly agree 100%, by the time the feds get the oversight and laws in place to keep it legit the LCN will already be raking in millions.

Re: New drug business opportunities and the LCN [Re: NNY78] #767552
03/12/14 08:20 AM
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Yep. If they get involved it will be huge money.. 90 percent of all the clubs are owned by straight felons in california they all just just use a front man, not to mention its an all cash business. I know one guy who owns just 1 dispensary and he has an empty apartment where just his money lives! Think of that guys got so much fucking cash he needs an empty apartment to hold it all..

Re: New drug business opportunities and the LCN [Re: NNY78] #767553
03/12/14 08:23 AM
03/12/14 08:23 AM
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dsbaloo Offline
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Semi legit business that deals in cash.. No better business for a criminal

Re: New drug business opportunities and the LCN [Re: NNY78] #767610
03/12/14 03:34 PM
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NNY78 Offline OP
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Colorado Rakes In $2 Million in Retail Pot Taxes for January

Colorado can expect up to $40 million in taxes collected from pot sales in 2014, which according to the law will be used to build new schools.

By McCarton Ackerman

03/12/14



Colorado’s legalization of marijuana is resulting in a profit high. In just the month of January alone, the state has pulled in $2 million in taxes related to the sale of recreational marijuana, in addition to another $1.5 million from taxes on sales from medicinal marijuana. More than $14 million worth of retail recreational marijuana was sold throughout the month. Based on current trends, Colorado can expect to make an additional $40 million in revenue from pot sales in 2014.

Marijuana users in Colorado have been required to pay high taxes in order to use the drug legally. There is a 10% sales tax on all retail marijuana in the state, in addition to the 2.9% sales tax that already exists in Colorado. The state also imposes a “retail marijuana excise tax” of 15%, but this isn’t directly charged to the consumer; it’s added on the first sale or transfer of marijuana from a retail marijuana cultivation facility. The excise tax is calculated by taking the average market rate per pound and multiplying it by the weight of the flower times the tax rate.

State officials are now left to ponder what to do with the extra money. Voters approved a law last year that requires the first $40 million collected from the special excise taxes to be directed towards school construction, which means the money will go directly into that for roughly the next 18 months. Gov. John Hickenlooper has proposed using the additional revenue afterwards to promote substance abuse treatment and anti-drug campaigns geared towards young people, as well as the current campaign to discourage users from driving while high.


The government is gettin its piece of the action, hopefully the schools will benefit and they will use a portion for treatment.

Re: New drug business opportunities and the LCN [Re: NNY78] #767613
03/12/14 03:48 PM
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These guys could probably skim off of the taxes but they wouldn't have to. There is so much money involved in these dispensaries that they could just do it legally. But greed won't allow that to happen, there gonna want ever dollar available to them. But the point is they don't have to break the law here to generate billions over the years.

If every other state in America followed what California and the others did, there would be no debt crisis here in the US. It's ashame that the solution to our problem with debt is right there at our fingertips, but due to morals and other bullshit this country will always fall victim to the gangs and the mob


"My uncle(Nicky Scarfo) always told me, you have to use your brains in this thing, and you always have to use the gun." -"crazy" Phil Leonetti-
Re: New drug business opportunities and the LCN [Re: PhillyMob] #767614
03/12/14 03:52 PM
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By the way NNY very good topic to discuss brotha.


"My uncle(Nicky Scarfo) always told me, you have to use your brains in this thing, and you always have to use the gun." -"crazy" Phil Leonetti-
Re: New drug business opportunities and the LCN [Re: NNY78] #768349
03/16/14 10:43 PM
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The poor front man prob doesn't get any money at all... is prob just a friendly asshole they got to put their name on the license... LOL

Re: New drug business opportunities and the LCN [Re: paprincess] #768383
03/17/14 07:25 AM
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Originally Posted By: paprincess
The poor front man prob doesn't get any money at all... is prob just a friendly asshole they got to put their name on the license... LOL


Lol I no it's a shame the front men are the guys with the risks of legal problems and have to act like they run shit with the strings being pulled from the background. I'm sure they get a little cut but not what they should.

Just look at the casino with Frank Rosenthal and the front man Allen Glick who everyone thought was the man with the power but we no how that whole thing ended up.


"My uncle(Nicky Scarfo) always told me, you have to use your brains in this thing, and you always have to use the gun." -"crazy" Phil Leonetti-
Re: New drug business opportunities and the LCN [Re: paprincess] #768441
03/17/14 01:33 PM
03/17/14 01:33 PM
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NNY78 Offline OP
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Princess, From what I have read lots of times these front men have gotten into some kind of trouble and may owe the mob money or have just been extorted into doing these types of things. While there may be an occasional knucklehead that goes into business with the mob thinking it will be good for them, most of these guys are forced into the life like the Senator in the GodFather, What was his name?

Re: New drug business opportunities and the LCN [Re: NNY78] #768444
03/17/14 02:03 PM
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If there is mob influence on a legit guy some judges will not make them pay restitution or make them pay the debt or let them file for bankruptcy. I read something not sure when it was dated but it was a strip club owner that was being shaken down by the westside

Re: New drug business opportunities and the LCN [Re: NNY78] #768557
03/17/14 07:43 PM
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i'm sure somebody somewhere has sent their dumb ass nephew to open a dispensary

it's easy and it's legal so i'm sure they've probably already infiltrated medicinal marijuana

Re: New drug business opportunities and the LCN [Re: cookcounty] #768576
03/17/14 09:20 PM
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North StL County, MO
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@cook county

You don't sound too sure.
I guess someone must have forgotten their wire

Re: New drug business opportunities and the LCN [Re: cookcounty] #768627
03/18/14 05:49 AM
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NNY78 Offline OP
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Cook, it is very profitable as well, by the time the feds get the infrastructure and laws in place to discourage criminal activity my guess is millions will be made.

Re: New drug business opportunities and the LCN [Re: NNY78] #768809
03/19/14 07:27 PM
03/19/14 07:27 PM
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I have a medical marijuana card and I know many growers, dispensary owners, etc. It is no mystery that organized crime has already become involved in the medical marijuana industry. The Hells Angels supply dispensaries in the Bay area, and in the Los Angeles area, I know for a fact there are guys with ties to gangs such as the Crips, 18th Street as well as some guys with connections to Russian/Eastern European OC.

The one thing I want to say is it is unlikely that OC would actually own a dispensary (at least for an extended period of time). There is too much regulation even in California. The real money is creating a collective. A collective is a group of growers who get together and basically start a company to produce weed and to sell it to dispensaries. This is where regulation is really loose. The state laws actually encourage the collectives to sell some of their product illegally back east. The reasons for this is the dispensaries quite frankly screw the growers. The dispensaries will only pay, at most $1000 a pound and that is for the very best stuff. Usually they pay $400-$700 a pound. then the dispensaries sell the weed for up to $18 a gram. This system, in my opinion encourages growers to sell their product illegally, because they cannot actually make enough money just selling to the dispensaries. Collectives have to sell a certain amount per year to the dispensaries to show the state officials they are on the up and up. I wanted to post this as I thought it was relevant to this thread and to give those who live outside California an idea of how these places work (at least in California).


You say share my life, and I think share my tequila. And then I think.... no.-Principal Lewis
Re: New drug business opportunities and the LCN [Re: NNY78] #768812
03/19/14 07:47 PM
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@gingello


plus u can't even have a gun on the property with 400k worth of product

i wouldn't feel safe with that shit

Re: New drug business opportunities and the LCN [Re: cookcounty] #768814
03/19/14 08:41 PM
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Los Angeles
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Hey Cook I am glad you brought that up. What these larger dispensaries do is hire a private security firm, that has guns. these guys are expensive though and only the largest dispensaries can afford them. Some of the shadier places in East LA form example, reach out to the locals (the gangs) who watch out for them for an under the table percentage. these are the dispensaries that the government is targeting.

Honestly, if I pick up a larger amount I carry my gun with me. Many of these places are in sketchy neighborhoods and I know people that have gotten jacked coming out with their "meds."

Last edited by Gingello101182; 03/19/14 08:47 PM.

You say share my life, and I think share my tequila. And then I think.... no.-Principal Lewis
Re: New drug business opportunities and the LCN [Re: Gingello101182] #768859
03/20/14 08:14 AM
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By DEBORAH SONTAG

November 16, 2013 379 Comments


Suboxone, Addiction Treatment With a Dark Side


For Shawn Schneider, a carpenter and rock musician, the descent into addiction began one Wisconsin winter with a fall from a rooftop construction site onto the frozen ground below. As the potent pain pills prescribed for his injuries became his obsessive focus, he lost everything: his band, his job, his wife, his will to live.

Mr. Schneider was staying in his parents’ basement when he washed down 40 sleeping pills with NyQuil and beer. His father heard him gasping and intervened, a reprieve that led Mr. Schneider into rehab, not his first program, but the one where he discovered buprenorphine, a substitute opioid used to treat opioid addiction.

In the two years since, by taking his “bupe” twice daily and meeting periodically with the prescribing psychiatrist, Mr. Schneider, 38, has rebounded. He is sober, remarried, employed building houses, half of a new acoustic duo and one of the many addicts who credit buprenorphine, sold mostly in a compound called Suboxone, with saving their lives.

At Clinics, Troubled Lives and Turbulent Care


Suboxone did not save Miles Malone, 20; it killed him. In 2010, a friend texted Mr. Malone an invitation to use the drug recreationally — “we can do the suboxins as soon as I give them to u, iight, dude?” — and he died that night in South Berwick, Me., of buprenorphine poisoning. The friend, Shawn Verrill, was sentenced this summer to 71 months in prison.

“I didn’t know you could overdose on Suboxone,” Mr. Verrill said in an interview at a federal prison in Otisville, N.Y. “We were just a bunch of friends getting high and hanging out, doing what 20-year-olds do. Then we went to sleep, and Miles never woke up.”

Suboxone is the blockbuster drug most people have never heard of. Surpassing well-known medications like Viagra and Adderall, it generated $1.55 billion in United States sales last year, its success fueled by an exploding opioid abuse epidemic and the embrace of federal officials who helped finance its development and promoted it as a safer, less stigmatized alternative to methadone.

But more than a decade after Suboxone went on the market, and with the Affordable Care Act poised to bring many more addicts into treatment, the high hopes have been tempered by a messy reality. Buprenorphine has become both medication and dope: a treatment with considerable successes and also failures, as well as a street and prison drug bedeviling local authorities. It has attracted unscrupulous doctors and caused more health complications and deaths than its advocates acknowledge.

It has also become a lucrative commodity, creating moneymaking opportunities — for manufacturers, doctors, drug dealers and even patients — that have undermined a public health innovation meant for social good. And the drug’s problems have emboldened some insurers to limit coverage of the medication, which cost state Medicaid agencies at least $857 million over a three-year period through 2012, a New York Times survey found.

Intended as a long-term treatment for people addicted to opioids — heroin as well as painkillers — buprenorphine, like methadone, is an opioid itself that can produce euphoria and cause dependency. Its effects are milder, however, and they plateau, making overdoses less likely and less deadly. And unlike methadone, buprenorphine (pronounced byoo-pruh-NOR-feen) is available to addicts by prescription, though only from federally authorized doctors with restricted patient loads.

Ken Mobley, a jailer in Whitley County, Ky., talking about the problem of Suboxone in prisons.Leslye Davis/The New York Times


Partly because of these restrictions, a volatile subculture has arisen, with cash-only buprenorphine clinics feeding a thriving underground market that caters to addicts who buy it to stave off withdrawal or treat themselves because they cannot find or afford a doctor; to recreational users who report a potent, durable buzz; and to inmates who see it as “prison heroin” and, especially in a new dissolvable filmstrip form, as ideal contraband.

“It’s such a thin strip they’ll put it in the Holy Bible, let it melt and eat a page right out of the good book,” said Ken Mobley, a jailer in Whitley County, Ky., who randomly screened 50 inmates recently and found 21 positive for Suboxone.

Many buprenorphine doctors are addiction experts capable, they say, of treating far more than the federal limit of 100 patients. But because of that limit, an unmet demand for treatment has created a commercial opportunity for prescribers, attracting some with histories of overprescribing the very pain pills that made their patients into addicts.

A relatively high proportion of buprenorphine doctors have troubled records, a Times examination of the federal “buprenorphine physician locator” found. In West Virginia, one hub of the opioid epidemic, the doctors listed are five times as likely to have been disciplined as doctors in general; in Maine, another center, they are 14 times as likely.

Nationally, at least 1,350 of 12,780 buprenorphine doctors have been sanctioned for offenses that include excessive narcotics prescribing, insurance fraud, sexual misconduct and practicing medicine while impaired. Some have been suspended or arrested, leaving patients in the lurch.

Statistics released in the last year show sharp increases in buprenorphine seizures by law enforcement, in reports to poison centers, in emergency room visits for the nonmedical use of the drug and in pediatric hospitalizations for accidental ingestions as small as a lick.

Buprenorphine’s staunchest proponents see these indicators as a byproduct of the drug’s rising circulation and emphasize its safety relative to other opioids.

“The benefits are high, the risk is low and it is worth it on a population-wide basis,” said Dr. Stuart Gitlow, the president of the American Society of Addiction Medicine.

But Dr. Robert Newman, a leading advocate of methadone treatment, said, “The safety factor should not be oversold.”

“It is diverted and sold on the black market,” he said. “It is misused, and it does lead to medically adverse consequences, including death. It is associated with a large number of deaths.”

The addiction drug was a “primary suspect” in 420 deaths in the United States reported to the Food and Drug Administration since it reached the market in 2003, according to a Times analysis of federal data.

But buprenorphine is not being monitored systematically enough to gauge the full scope of its misuse, some experts say. The Centers for Disease Control and Prevention does not track buprenorphine deaths, most medical examiners do not routinely test for it, and neither do most emergency rooms, prisons, jails and drug courts.

“I’ve been studying the emergence of potential drug problems in this country for over 30 years,” said Eric Wish, the director of the Center for Substance Abuse Research at the University of Maryland. “This is the first drug that nobody seems to want to know about as a potential problem.”

The government has a vested interest in its success.

The treatment is the fruit of an extraordinary public-private partnership between a British company and the American government, which financed clinical trials and awarded protection from competition after the drug’s patent expired.

The company, now a consumer goods giant called Reckitt Benckiser, hired several federal officials who had shepherded the drug, and it has financially supported many of the scientists and doctors who are studying it and advocating its use. But over the last few years, the company’s aggressive campaign to protect its lucrative franchise has alienated some of its customers and allies.

In an 11th-hour bid to thwart generic competition and dominate the market with its patent-protected Suboxone filmstrip, the company sought to convince regulators that the tablet form, which earned it billions of dollars, now presented a deadly risk to children as packaged in pill bottles.

The F.D.A. did not agree. Early this year, it approved generic tablets and asked the Federal Trade Commission to investigate potentially anticompetitive business practices by the company.

Reckitt Benckiser defended its advocacy for the Suboxone filmstrip — now its only pharmaceutical product — saying its research showed that the film was safer than the tablets, kept addicts in treatment longer and had less of a street presence. It added that it was overseeing an F.D.A.-required “risk evaluation and mitigation strategy to promote the appropriate use of buprenorphine with the goal to minimize the misuse, abuse and multidose unintentional exposure of these products.”

Dr. John Mendelson of San Francisco, a consultant for the company, said it could be proud of its management of a difficult product. “Their biggest success so far,” he said, “is that the whole system has not imploded, that enough doctors have prescribed the drug appropriately that there has been no move to withdraw it from the market.”

Ronni Katz, a health official in Portland, Me., is less impressed.

“I remember the early days when we met with the pharma rep in the area — I don’t think he was trying to mislead us — he truly believed it was a miracle drug,” she said. “But they way underestimated the potential for abuse, which means to me they really don’t understand addiction.”

Skeptics and Believers

Nearly a half-century ago, buprenorphine was born in the laboratory of an English company specializing in mustard and shoe polish, where chemists were competing to invent a less addictive painkiller.

“We were trying to beat morphine, not methadone,” said John W. Lewis, 81, who oversaw the drug’s development.

Though far more potent than morphine, buprenorphine appeared in animal tests to be unusually safe even in very high doses. In 1971, Dr. Lewis and colleagues traveled to an infirmary in Glasgow to conduct the first human tests — on themselves.

Buprenorphine made Dr. Lewis violently ill. “It quite took the edge off our stay in a splendid hotel on the banks of Loch Lomond,” he said in a speech, and it exposed the painkiller’s “Achilles’ heel” — “the rather high incidence of nausea and vomiting.”

In the mid-1970s, Dr. Lewis began shipping the drug to the United States Narcotic Farm in Lexington, Ky., to test its abuse potential on detoxified addicts. A prison that doubled as a treatment hospital, the farm was home to the government’s Addiction Research Center (and at times to jazz greats like Chet Baker, Elvin Jones and Sonny Rollins).

With opposition to human research mounting, buprenorphine would be the last drug tested there; government scientists justified the research by arguing that the painkiller also had the potential to treat addiction.

“Here’s the thing: The Lexingtonians were against methadone,” said Nancy Campbell, a historian of drug policy. “They felt like addicts liked it too much, and it had overdose potential. They never thought abstinence and ‘Just Say No’ would work with this population. So they were eager to find an alternative.”

The idea of using opioid substitutes to treat opioid dependence is based on the premise that long-term drug use profoundly alters the brain, that the craving, seeking and taking of opioids is a “bio-behavioral” compulsion. While addiction is considered a chronic, relapsing disease, experts believe that replacing illegal drugs with legal ones, needles with pills or liquids and more dangerous opioids with safer ones reduces the harm to addicts and to society.


Dr. Andrew Kolodny describing how buprenorphine works.Leslye Davis/The New York Times


Like heroin, buprenorphine attaches to the brain’s opioid receptors, but it does not plug in as completely. It is slower acting and longer lasting, attenuating the rush of sensation and eliminating the plummets afterward. Addicts develop a tolerance to its euphoric effects and describe themselves as normalized by it, their cravings satisfied. It also diminishes the effects of other opioids but, studies have shown, does not entirely block them, even at the highest recommended doses.

A devoted cadre of government scientists saw buprenorphine as a “holy grail” and over the next few decades “floated in between the public and private sector for most of their careers,” Dr. Campbell said. The farm’s pharmacist would become an executive vice president of Reckitt Benckiser Pharmaceuticals, for example, and the company would contract with the former National Institute on Drug Abuse director who originally promoted the public-private partnership.

It was a collaboration that the company, whose brand names include Lysol, resisted for a long time, said Charles O’Keeffe, a former White House drug policy official who incorporated Reckitt in the United States.

“They were grocers,” he said. “Finally, I went to the board and said, ‘It’s for the social good.’ Ultimately, they relented but said, ‘Just don’t spend a lot of money.’ ”

He did not have to. The federal drug abuse institute financed the two big clinical trials necessary to win F.D.A. approval for $28 million and later spent an additional $52.4 million for studies at its clinical research sites. At least $19 million more in studies are underway.

Further, the F.D.A. granted the company a seven-year monopoly based on its claim that it would never recoup its development costs. (Reckitt now has a market value of $56.7 billion; 21 percent of its operating profits last year came from Suboxone.)

Still, hurdles had to be cleared.

First, Mr. O’Keeffe said, “We had to change the law because it would have been illegal.”

The Harrison Narcotics Act of 1914, as interpreted, prohibited doctors from prescribing narcotics to narcotics addicts “to maintain their addictions.” In the 1970s, methadone treatment was authorized but limited to clinics where the drug was dispensed, usually daily.

The original advocates of buprenorphine, though, wanted to make addiction treatment mainstream rather than segregate addicts in clinics that became lightning rods for community opposition. They wanted doctors in offices to prescribe it, just like any other take-home medication.

So Mr. O’Keeffe found “influential members of Congress interested in doing this”: Senators Carl Levin, Democrat of Michigan, and Orrin G. Hatch, Republican of Utah, with support from Senator Joseph R. Biden Jr., Democrat of Delaware. In the end, because of law enforcement concerns, the Drug Addiction Treatment Act of 2000 included unique prescribing restrictions: that doctors seek federal permission, get eight hours of training, accept a 30-patient limit and attest to their ability to make counseling referrals.

The concerns grew from other countries’ experiences with buprenorphine treatment over the previous decade; successes had been accompanied by abuses. So F.D.A. officials insisted on the addition of an “abuse deterrent” — naloxone. If addicts crushed and injected the tablets, the naloxone would precipitate excruciating withdrawal symptoms.

The Drug Enforcement Administration was skeptical, saying studies showed that naloxone did not provoke “any evidence of withdrawal” in “a substantial percentage” of opiate abusers, and that the amount in the proposed compound would produce only a half-hour of “unpleasantness” in those susceptible.

Skeptical, too, were buprenorphine’s original champions at Reckitt, who would have preferred a different additive or more naloxone. “It was not a perfect solution,” Dr. Lewis said.

Even so, Suboxone — four parts buprenorphine, one part naloxone — was created. And in late 2002, along with Subutex (plain buprenorphine), it was approved by the F.D.A. just as its target audience was about to expand unexpectedly.

An estimated 2.5 million Americans were dependent on or abused opioids last year, mostly painkillers, although heroin dependence has skyrocketed, with the number of addicts doubling over a decade to 467,000, government data indicate. In 2010, the last year studied, 19,154 people died of opioid overdoses.

“Had buprenorphine never been released and all we had was methadone, that number would be much higher,” said Dr. Andrew Kolodny, the president of Physicians for Responsible Opioid Prescribing.


http://www.nytimes.com/2013/11/17/health...enace.html?_r=0

Re: New drug business opportunities and the LCN [Re: NNY78] #775000
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It didn't take long for the bad guys to get in on the action in Colorado.

DENVER - Federal agents and local officers are raiding four marijuana businesses tied to an alleged international money-laundering scheme.

Authorities first confirmed to 7NEWS that they raided VIP Cannabis at 2949 W. Alameda Ave. Wednesday morning, saying that teams executed a search and seizure warrant for the business. The same business was also raided last year.

Later, after our news partners at The Denver Post broke the stories about additional raids, a source confirmed to 7NEWS that there were raids at three other addresses in Denver: 4800 N. Brighton Blvd., 2640 E. 43rd Ave. and 755 S. Jason St. They all appear to be warehouses used for growing operations.

-- Fourth Suspect Arrested --

As the raids were occurring, U.S. marshals arrested a fourth suspect, Gerardo Uribe, a 33-year-old Colombian. He appeared in Denver federal court Wednesday afternoon.

Uribe was the last of four suspects arrested under a federal indictment unsealed Monday. The indictment charged Uribe and his younger brother, Luis Uribe, along with another Colombian, Hector Diaz, and Denver attorney David Furtado with money-laundering crimes related to the illegal cultivation and distribution of marijuana.

The Uribe brothers ran VIP Cannabis, which federal authorities call the "VIP Wellness Center."


Video from AIRTRACKER7 showed firefighters and agents working around two safes that had been cut open at the business at 2949 W. Alameda Ave. in Denver. On the ground, 7NEWS photojournalist Pete Burd saw masked agents carrying items out to a waiting U-Haul truck through a smashed glass door.

A sign on the business said it was currently closed for remodeling and would "Be back soon."

Authorities said the raid was conducted by federal agents with the Drug Enforcement Administration, Internal Revenue Service, Diplomatic Security Service and the U.S. Marshals Service along with officers from the Denver Police Department and state and local law enforcement.

The indictment identifies VIP Wellness as a source of huge sums of cash from the illegal cultivation and sale of marijuana.

On Oct. 31, 2013, Gerardo Uribe is accused of delivering to Furtado $449,980 in cash from VIP Wellness, the indictment states. Furtado and the Uribe brothers are also charged with laundering that "criminally derived" money through a Colorado Wells Fargo bank account in an effort to conceal it from federal authorities, the indictment states.

The indictment hinted that Wednesday's raids were coming. It included an asset forfeiture allegation, which allows federal agents to seize all property, including money, derived from criminal activity, including the alleged marijuana trafficking operation.

Our partners at the Denver Post reported April 16 that VIP Cannabis was no longer selling medical marijuana, putting it in compliance with a state order.

State regulators this month issued notices of denial on the applications from VIP Cannabis and three related grow warehouses, citing after-hours sales, incomplete record-keeping and other violations, according to the newspaper.

The raid comes on the same day Diaz was in court. He was re-arraigned Wednesday morning and remains out on bond.

Furtado and Luis Uribe are scheduled to appear in court Thursday.

-- Indictment: Colombians investing in CO pot businesses --

Furtado, Diaz and the Uribe brothers are accused of wiring more than $500,000 from Colombian banks and investing it in Colorado marijuana growing and dispensary operations. Federal investigators are still working to identify who in Colombia provided the money and other potential accomplices in Colorado.

The federal grand jury indictment unsealed Monday also accuses the men of using a shell company and a Denver lawyer's trust account to launder money from illegal cultivation and distribution of marijuana.

Furtado is a Denver lawyer and dispensary owner.

Diaz was arrested on a weapons charge during the raids last fall, and has also been charged in the money laundering case.

Authorities obtained an infamous photo of Diaz wearing a DEA cap while holding two assault rifles -- one in each hand -- with two handguns tucked into his pants. DEA is the acronym for the U.S. Drug Enforcement Agency, which is investigating Diaz and the money-laundering case.

During the Nov. 21, 2013 raids of marijuana growing and dispensary operations from Denver to Boulder County, DEA agents also seized five assault rifles, five handguns and a shotgun from Diaz's Arapahoe County home.

The indictment made public Monday said the men used the money from Colombia to purchase a sprawling warehouse facility at 5200 E. Smith Road in Denver. Their plan was to use the warehouse facility to illegally grow and distribute marijuana, the indictment states.

The indictment lays out a step-by-step conspiracy to create a sham company and several bank accounts to launder money and conceal it from state and federal authorities.
• In 2013, federal prosecutors say, Gerardo Uribe filed documents with the Colorado Secretary of State to incorporate a front company called Colorado West Metal, LLC. Diaz was listed as the person responsible for forming the corporation.
• Furtado, the Denver attorney, was the registering agent for Colorado West Metal LLC. He opened a Wells Fargo bank account for the corporation and he was the only person who could sign the account's transactions.
• The indictment says Furtado also used his attorney trust account, held in the name of his law firm, to orchestrate the purchase of the Smith Road warehouse property.
• The indictment alleges that Diaz, Furtado and Gerardo Uribe used wire transfers to funnel $424,000 from a Colombia bank -- the Banco Bilbao Vizcaya Argenteria -- to the Colorado West Metal's Wells Fargo account with the intent to cultivate, manufacture and distribute marijuana.
• The indictment states Furtado wired another $120,000 from the Banco de Occidente in Colombia to his attorney trust account with Wells Fargo in Colorado, with the intent to promote the cultivation, manufacture and distribution of marijuana.



The defendants were indicted on a variety of charges, ranging from conspiracy to commit money laundering to engaging in monetary transactions in property derived from unlawful activity.

Money laundering alone carries a maximum penalty of 20 years in federal prison and a $500,000 fine.

The case is being investigated by the DEA, the Internal Revenue Service and U.S. Department of State.


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