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Bitcoin for Fentanyl: How Drug Dealers Cash in on Cryptocurrency

Bitcoin for Fentanyl: How Drug Dealers Cash in on Cryptocurrency

Connect to the wifi and check your wallet app. Today we are talking about the crooked connections to cryptocurrency.

In a new age of electronic economics, one brand has made a lot of noise- Bitcoin. As early as 2009, when it was created, people began to stockpile the stuff. It was the first decentralized digital currency, and it has inspired thousands to risk this uncharted financial frontier with hopes of discovering a quick way to score some real-world cash from encrypted accounts. Then, just last year the cryptocurrency trend exploded onto Wall Street and ever since people have been trying to take advantage of the hype before the well runs dry. Suddenly anyone with a little extra scratch has become a cyber stockbroker.

While some have tried to cash in just to see if they can hit the crypto-lotto, others have become Bitcoin millionaires. But some of those people were actually gathering those funds through illicit means, like fentanyl trafficking.

Bitcoin for Beginners

For many of us, the whole Bitcoin thing is still a bit confusing. If some of these explanations seem oversimplified for anyone currently obsessed with cryptography, “block time” or whatever a “Merkle tree” is… I’m sorry, I guess.

Bitcoin was originally designed as being a truly free-market currency. This means without any company, country or central bank controlling its value or supply. Bitcoin takes no physical form, but actually only exists as a virtual token. Transactions are recorded in an open public ledger known as a blockchain. This peer-to-peer network avoids many risks of having a central database. But, while the transactions are typically public, the Bitcoin ownership is not.

The digital tokens are stored in a digital wallet that is only identified by a series of numbers and letters. A lot of times people using the digital wallet remain anonymous because they don’t have to provide any personal information to set up their accounts.

Because of all the freedom of Bitcoin, along with its anonymity, it became extremely useful for those involved with the Dark Web. You can read plenty more on that subject, but essentially is it another layer of the internet criminals use for conducting illicit business. One site from the Dark Web would be the infamous Silk Road.

The Future of Fentanyl Financing

Authorities say that bitcoin has helped create a new generation of criminals who buy and sell drugs online. It has become much easier for drug dealers to cover their tracks with cryptocurrencies.

Which of course leads us to fentanyl trafficking. For a long time the majority of drugs sold on the Dark Web were:

However, the sale of fentanyl is rising rapidly. Considering most fentanyl is sold online from dealers overseas, it makes a lot of sense that traffickers would rely heavily on digital money. Greg Nevano, the Deputy Assistant Director of Homeland Security Investigations states,

“You can order illicit opioids right online and have them delivered right to the comfort of your living room.”

According to CDC data, nearly 20,000 people died after overdosing on fentanyl in 2016. This is a huge contributing factor to one of the worst drug epidemics in American history.

For example, undercover investigators working for a Senate committee led by Ohio Republican Rob Portman talk about an e-mail from a fentanyl dealer with an important message for potential buyers. The fentanyl trafficker states:

“We have switched to bitcoin payments only. Now you will enjoy a 10 percent less price tag on all products,”

The email also points out:

“Good part is that paying by bitcoin you can order as much as you like with no limit.”

Ohio is suffering from one of the highest rates of fentanyl overdose deaths in the country. This particular investigation was part of a yearlong inquiry into the international supply chain that funnels fentanyl from China to homes across America. Earlier this year, the committee released a report which tracked activity on six websites offering fentanyl. That report indicated:

In each of these cases, the sites list bitcoin as the preferred method of payment. Portman himself adds,

“Because it’s anonymous, it’s the currency of choice for these drug traffickers,”

Just last fall the Justice Department shut down another illicit online marketplace called AlphaBay. In this case, the Justice Department seized around 144,000 Bitcoins, which comes out to around $48 million.

Cracking Down on Cryptocurrency

Lawmakers in Washington have come to the conclusion that cracking down on cryptocurrency is essential in order to stop the flow of fentanyl coming into the United States. Thankfully, this is one thing that officials from both sides of the aisle agree must be addressed.

Republican Senator Chuck Grassley from Iowa and Democratic Senator Dianne Feinstein from California have presented a bipartisan bill that would create explicit requirements for digital currencies to comply with laws against money laundering. Attorney General Jeff Sessions launched a task force earlier this year to specifically target fentanyl sales online.

Can We Blame the Crypto?

Meanwhile, many advocates for cryptocurrencies are not happy about these new campaigns. Perianne Boring, president of the Chamber of Digital Commerce, is one person who fights on behalf of Bitcoin, stating:

“Blaming bitcoin for this crisis would make as much sense as blaming the internet or cars that drug traffickers have to use.”

Boring’s organization is trying to help. They are part of the Blockchain Alliance, working with more than two dozen companies to help authorities combat crime.

Industry groups also reject the claim that cryptocurrency is anonymous and untraceable. They say Bitcoin users are “pseudononymous” because buying Bitcoin does require real money. Advocates insist that most users convert real cash through exchangers that do actually collect personal information. They also argue that in order to spend that Bitcoin, users will have to convert it back to real money, and that’s where law enforcement can intercept illegal operators.

Crypto-advocates also point out that cryptocurrency exchangers in the United States are also subject to federal reporting requirements and laws against money laundering. Earlier this year an industry analysis by the Foundation for Defense of Democracies found:

  • Less than 1 percent of bitcoin is used for illegal purposes.
  • Almost all of the illicit activity came from transactions on the dark web

However, the report also goes into detail about ways criminals can avoid regulated currency exchangers altogether. This includes using foreign converters or “mixing” sites that allow users to swap Bitcoin.

Meanwhile, new cryptocurrencies that are even harder to trace are gaining in popularity. So it would seem that as soon as the system catches up to a new digital trend, someone creates a copy and the cycle starts all over.

So can Bitcoin and other cryptocurrencies expect to be subject to new attempts at strict regulation? If so, what kind of regulations should be put in place to track digital transactions and prevent further abuse for illicit profits?

The evolution of the internet has changed how illicit drug markets work. The fight against drug trafficking is more complex than ever before, and strategies for facing drug dealing, drug use, and addiction have to evolve, too. This also means providing innovative and cutting-edge treatment options. If you or someone you love is struggling with substance abuse or addiction, please call toll-free 1-800-951-6135. We want to help. You are not alone.   

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Zuckerberg Testimony: Should Facebook Be Stopping Opioid Trafficking?

Zuckerberg Testimony: Should Facebook Be Stopping Opioid Trafficking?

Zuckerberg Testimony: Should Facebook Be Stopping Opioid Trafficking?

Author: Justin Mckibben

This past Tuesday and Wednesday, Facebook co-founder and CEO Mark Zuckerberg found himself sitting in front of a tough crowd on Capitol Hill for 2 days of questioning that covered various topics about the social media empire. The testimony covered how Facebook influences politics, handles user data, and what steps are being taken to prevent abuse of the massive tech companies international platform.

During the testimony of Mark Zuckerberg, the topic came up of drug trafficking, specifically opioid sales, through Facebook.

Is Social Media Enabling Illegal Activity?

The line of questioning concerning opioids came from David McKinley. McKinely is the Republican Representative from West Virginia. On day two of the testimony, Mark Zuckerberg was grilled about opioid dealers abusing the social media space in order to distribute their drugs. During the conversation, McKinley states,

“Your platform is still being used to circumvent the law, and allow people to buy highly addictive drugs without a prescription,”

The Congressman went on to ask,

“With all due respect, Facebook is actually enabling an illegal activity and, in so doing, you are hurting people. Would you agree with that statement?”

Zuckerberg answered,

“Congressman, I think that there are a number of areas of content that we need to do a better job of policing on our service. Today the primary way that content regulation works here … is that people can share what they want on the service, and then if someone sees an issue they flag it to us, and then we will review it.”

During McKinley’s comments, he actually shows Zuckerberg with images on a screen that opioids and other prescription narcotics are still actively being sold via Facebook. Later in McKinely’s statements he adds,

“That was just from yesterday. It’s still up. So my question to you is- when are you going to take down these posts that are done by illegal digital pharmacies?”

Zuckerberg replied,

“Congressman, when people report the posts, we will take them down and have people review them.”

When the congressman continued to press Zuckerberg on Facebook taking responsibility for the posts made on the platform concerning illegal drugs, Zuckerberg replied,

“Congressman, I agree that this is a terrible issue and respectfully, when there are tens-of-billions or a hundred-billion pieces of content shared every day… even 20,000 people reviewing it can’t look at everything. What we need to do is build more AI tools that can proactively find that content.”

  • AI referring to artificial intelligence.

This is not the first time critics have called out tech companies for falling short on policing illicit drug sales through their platforms.

In 2011, search-engine giant Google agreed to pay $500 million to the Department of Justice for showing prescription drug ads from Canadian online pharmacies to U.S. consumers. Only a week before Zuckerberg sat down to speak with Congress, the FDA Commissioner Scott Gottlieb had already called on social media platforms to root out and exterminate the online opioid trade. Gottlieb stated,

“We find offers to purchase opioids all over social media and the Internet, including Twitter, Facebook, Instagram, Reddit, Google, Yahoo, and Bing. But when it comes to opioids, we haven’t seen meaningful, voluntary actions.”

Some of the posts McKinely flagged to Facebook have already been taken down. However, McKinley still says that Facebook’s internal controls “don’t seem adequate” in regards to detecting and removing illegal drug posts.

Are Zuckerberg and Facebook Responsible?

The biggest theme- whether it came to Cambridge Analytica, censorship of political views, selling consumer data or illicit opioid marketing- was accountability.

The question throughout the testimony is- are Zuckerberg and Facebook responsible?

Some have argued that if Facebook intends to censor things like hate speech or political interference, then they should also be responsible for monitoring and shutting down any illegal activity happening on the website. Some people believe that if drug dealers are posting on social media, their posts should be automatically removed. That is a good goal. Others might even insist that Facebook should report these profiles to law enforcement to help investigate dealers and make more arrests.

But should Facebook be mandated and regulated to enforce these ideas? Moreover, should they be punished when people manage to cheat their system or slip through the cracks?

Many might argue Facebook should not be punished for the posts individuals make. One comparison might be that we do not prosecute cell-phone service providers when their products and services are used in illegal activity. And if we expect Facebook to thoroughly monitor all activity and report any suspicious behavior to the authorities, should cellular services be held to the same standard?

While private phone-calls are a far cry from public posts to the internet, what is the best way walk this line of privacy and security in the digital age?

Is it fair to say that Mark Zuckerberg is himself hurting people because his company is unable to police the hundreds of billions of posts made to their site every day? Or is it true that the company is slacking when it comes to addressing these issues promptly and effectively?

Social media is changing a lot of the way we communicate, and like any other advancement, it can be taken advantage of. One thing is certain; if we want to fight the opioid epidemic we have to put more research into prevention, and more focus and support into safe and effective treatment. Technology can impact drug use, but it can also connect people and help them get on the right path toward recovery. If you or someone you love is struggling, please call toll-free now. We want to help.

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How Fentanyl Trafficking Packages are Still Getting into the Country

How Fentanyl Trafficking Packages are Still Getting into the Country

Author: Justin Mckibben

Deaths due to drugs like fentanyl and other synthetic opioids continue to rise at a devastating pace in America. Despite the implementation of a special opioid commission to tackle the opioid crisis head-on, and even after the President of the United States issued a public health emergency concerning this ongoing issue, drugs like fentanyl are still finding their way into the country.

So how is it that these dangerous drugs are still getting across our borders?

Mailing Law Loophole

Much of the current flow of fentanyl into America is said to be connected to a major loophole in mail security. As it stands, every day up to one million packages overall get into the US without being screened.

Under the current laws, most international packages must include some general information, such as:

  • Information on the sender
  • The packages destination
  • Contents of the package

These seemingly simple details can, in fact, help authorities track and detect packages containing illicit substances. However, these are not bulletproof methods of detections.

A big part of the problem is a loophole that exists within our current system. According to Alex Wolff, of the bipartisan coalition Americans for Securing All Packages, 

“Due to a loophole in the global postal system, packages sent via private couriers (like UPS or FedEx) are required to have the advance electronic data used by law enforcement to screen and stop dangerous material, while packages shipped via foreign postal services are not.”

Wolff explains that when materials are sent through certain channels from outside the country, they are sent without the necessary security data that law enforcement agencies require in order to screen and stop dangerous packages.

Considering that fentanyl and other synthetic opioids are expected to be produced primarily in China, much of the drug is being shipped through this international loophole right into the United States. Thus, law enforcement is essentially flying blind in their efforts to catch a lot of the drug as it slips into the country.

The STOP Act

In an effort to put an end to this exploitation of the mailing system, the Synthetics Trafficking & Overdose Prevention (STOP) Act was introduced to the Senate and House of Representatives in February of 2017. It is currently listed as H.R. 1057, as introduced by Republican Representative Patrick J. Tiberi of Ohio. This bipartisan and bicameral legislation could be a huge step forward. Sponsors for the bill include:

  • Ohio Republican Senator Rob Portman
  • Wisconsin Republican Senator Ron Johnson
  • New Hampshire Republican Senator Kelly Ayotte

Each of these officials represents a state that has been hit hard by the opioid crisis. Surprisingly, almost a year later there has been no further action by Congress to pursue this bill.

Still, Alex Wolff remains optimistic that Congress will act soon to push the bill forward. Now the STOP Act also has the support of:

  • The National Council of State Legislators
  • Fraternal Order of Police
  • The American Medical Association

To clarify, there are a few other prominent “STOP” Acts in the past, including:

  • TheSober Truth on Preventing Underage Drinking Act (STOP Act) of 2006

This was America’s first comprehensive legislation on underage drinking.

  • The Strengthen Opioid Misuse Prevention (STOP) Act of 2017

This was a law for North Carolina aimed at curbing the misuse and abuse of opioids.

Putting a STOP to Fentanyl Shipping

Whether having tracking information on international packages seems like a big deal or not, most experts take it very seriously. According to former assistant secretary in the Department of Homeland Security Juliette Kayyem, who is a lecturer on international security at the Harvard Kennedy School,

“You have the demand problem, the public health problem of making sure people cannot be addicted, but on the supply-chain issue, one of the loopholes is clearly the postal system,”

True, not very many drug distributors write “fragile fentanyl shipment: Handle with care” on their postage. However, Kayyem says that collecting data from senders, even those who are less likely to be truthful is important for law enforcement to be able to stop drugs like fentanyl from coming into the country. Kayyem states that even if someone from another country is shipping things in and lies about what is in the package, that lie itself becomes a means to get them in the long run.

Should this bill be pushed into action? Is this enough, or should there be a way to impose even more strict regulations on international mailing to put a stop to the exploitation of the mailing system? Is this the best way to curb fentanyl use and overdose?

In the past few years, overdose deaths due to synthetic opioids like fentanyl have skyrocketed. Over 20,145 people died from synthetic opioids other than methadone in 2016. But the opioid crisis isn’t just about preventing the drug from coming into the US. We also need to support effective addiction treatment options. If you or someone you love is struggling with substance abuse or addiction, please call toll-free now.

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Florida Police Arrest Drug Dealers by the Dozens

Florida Police Arresting Drug Dealers by the Dozens

Author: Justin Mckibben

Talk about a power-move… these might just be the kind of game-changers we need to see more of in America.

Even though it is an amazing place for living in recovery, also considered the recovery capitol of the country, South Florida has seen its fair share of trouble in paradise. With an opiate epidemic that has gripped every part of America, even this beautiful community has a population of drug dealers and users, but Florida police are cracking down hard.

As someone who lives here in South Florida as a transplant from the Midwest and an active member of the recovery community it brings a great deal of satisfaction to see the area I now consider my home-away-from-home become a better place.

The last couple months there has been reason to celebrate some of the efforts put forth by law enforcement to make these cities safer. With stories in the news about how bad it gets out there, I figured it would be good to highlight two very recent stories of how police have made massive strides in the right direction when it comes to cutting off influence of the drug dealers in their neighborhoods.

Operation Street Sweeper- Delray City Arrests 28

At the end of April the story broke that police in the city of Delray Beach, Florida had arrested 28 suspected drug dealers in only 10 days as part of an undercover operation. One of the most recent arrests made was that of a man who carried a gun that reports said was called the “cop-killer.” This weapon carried condensed rifle bullets powerful enough to pierce bullet-proof vests, and police are happy to have this dangerous handgun off the streets.

The weapon was traced back to 32 year-old Gerald Petion, who was arrested Sunday evening on charges of:

  • Possession and sale of heroin
  • Possession of a weapon by a convicted felon

Apparently authorities state that Petion had actually left behind his gun during a police chase two weeks ago.

Delray Beach police began “Operation Street Sweeper” in February with the intention of getting drug dealers in this beautiful South Florida area out of the community. Controlled sales with known drug dealers were repeatedly staged by undercover police officers over the course of months in order to conduct a thorough investigation that lead to these arrests. Police obtained the warrants for these arrests in early April and tracked down many of the dealers, but some are still at-large.

Having arrested over 2 dozen alleged drug dealers in less than 2 weeks time is an impressive move sure to make a heavy impact on the drug traffic in the area. Most of the men and women busted by police were selling heroin, although some sold cocaine and prescription pills.

Operation Dope Death- Boynton Beach Busts 13

Boynton Beach police say an operation they labeled “Operation Dope Death” has helped them dole out a major victory over drug dealers in their community, claiming that this operation lead to:

  • Arresting 13 suspected drug dealers
  • Confiscated 62 grams of heroin
  • 5 grams of cocaine
  • 4 grams of marijuana
  • $4,300 cash
  • 8 cars
  • 1 gun

Police say the month-long investigation came after the rising number of calls in response to drug overdoses in the city so far this year, with more than 2/3 cases involving heroin and 5 ending in tragic deaths.

Out of the list of suspected drug dealers involved in the arrest, several were given multiple charges and suspected of dealing in multiple substances that are all controlled and dangerous.

10 have been booked into the Palm Beach County Jail since Monday, and there was even a 17-year-old suspect arrested and charged with the sale of heroin.

With these two substantial operations the police departments in South Florida are working towards dissolving a huge segment of the drug trafficking in the area, and hopefully as the community sees this more resources will come together to make moves toward even more change. It will take time, but it appears possible to level the playing field in more ways than one.

Paradise is nowhere near lost, but it will take work. The same is true for the lives of those impacted by addiction. Even in the darkest times having a willingness to move forward can save lives. If you or someone you love is struggling with substance abuse or addiction, please call toll-free 1-800-951-6135. We want to help. You are not alone.

White Christmas Cancelled: Police Find 136 Pounds of Cocaine in NYC

White Christmas Cancelled: Police Find 136 Pounds of Cocaine in NYC

Author: Justin Mckibben

Well the weather man might not get the joke, the truth is the New York City Police, working alongside federal law enforcement agents, have recently made a bust that will cancel the white Christmas in NYC. According to Police and federal agents who broke the story, this week they have seized what they described as a “staggering” cargo of cocaine in the Bronx.

2 Names Making the Naught List

Apparently this massive shipment of cocaine had been shipped from Massachusetts, and in the course of the bust two men from Puerto Rico were arrested in connection to the bust. The two are allegedly part of a major drug trafficking network, and now they are definitely making the naughty list this holiday season for their involvement with this immense amount of illegal drug possession. Those two men were:

  • Mark Soto
  • Xavier Herbert-Gumbs

So far these two men have each been charged with two counts of criminal possession of a controlled substance.

Brand Name Bust

The sleigh-ride for these traffickers was cut short when a joint operation with New York Police Department detectives and Homeland Security Investigations agents stopped their cars this past Thursday evening. The law enforcement officers then discovered brick-shaped packages of cocaine pressed into bundles and marked with brand names in the vehicles.

According to local new networks in the area authorities stopped a rented vehicle around 6:15 pm, finding 110 pounds of cocaine inside. 24-year-old Herbert-Gumbs was reportedly a passenger in the car and confessed to the authorities that he had placed the box holding the cocaine bricks in the vehicle.

About an hour later, authorities stopped 23-year-old U.S. Army Reserves private Mark Soto as he was taking a duffel bag out of the trunk of a different vehicle. The new report claims that these authorities found 26 pounds of cocaine inside the bag.

After the hauling the two into custody the officers took their inventory and according to the court records, the defendants were allegedly transporting 136 pounds of cocaine, worth an estimated $3 million! New York City’s Special Narcotics Prosecutor Bridget G. Brennan said during a statement concerning the case,

“The sheer amount of cocaine seized in this case is staggering. This is the largest seizure of cocaine being transported in the region that our office has handled in recent years.”

But there was even more gifts to be unwrapped by the officers, because following the arrests investigators claimed they also seized $6,000 and a U-Haul equipment contract in the name of “Mark Gomez,” an alias they said Soto used, after officers had searched an apartment Friday evening on the block where Soto had been stopped.

Reports have also shown that police found identifying documents belonging to Herbert-Gumbs inside the vehicle Soto was using when he was arrested, suggesting it is evidence that the two were working together in some capacity while trafficking their respective bricks of “cheer” for special delivery. Glenn Sorge, acting special agent in charge HSI New York, stated:

“The violence associated with cocaine trafficking and the illicit proceeds poses a major threat to our communities’ welfare. HSI remains at the forefront of combating criminal organizations that threaten our homeland by smuggling drugs into the United States.”

Soto and Gumbs were arraigned the following day in Manhattan on charges of criminal possession of a controlled substance. Bail was set at $400,000. Looks like a lot of people won’t be getting cocaine for Christmas, but there might be a few extra lumps of coal for these two behind bars.

Drug policy and reform are changing the game for the cartels and drug traffickers, while law enforcement is taking a stand against the availability of drugs in response to mounting overdose deaths in America. For those suffering from drug addiction these reforms also mean change in a compassionate approach to help them the choice to get help. If you or someone you love is struggling with substance abuse or addiction, please call toll-free 1-800-951-6135

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