Pubdate: Tue, 01 Aug 2000 Source: New York Times (NY) Copyright: 2000 The New York Times Company Contact: 229 West 43rd Street, New York, NY 10036 Fax: (212) 556-3622 Website: http://www.nytimes.com/ Forum: http://www10.nytimes.com/comment/ Author: Andrew Jacobs STUDENT JAILED IN A DRUG CASE HANGS HIMSELF NEPTUNE, N.J., July 31 -- Kenneth Gregorio and Brian Juliano did not fit the profile of the street-hardened drug dealer. As a criminal justice major at nearby Monmouth University, Mr. Juliano knew he and his classmate were in deep trouble on Saturday night when law enforcement officials charged them with the possession and intended sale of 49,000 tablets of Ecstasy, the dance-club drug that has become increasingly popular with young suburbanites. Just a few hours after the students were taken to the Neptune Police Station in handcuffs, Mr. Gregorio, 23, a communications major, was found dead in his cell. He had hanged himself with the drawstring from his sweat pants, the police said. Although they would not officially speculate on why Mr. Gregorio took his own life, investigators and prosecutors privately suggested that his suicide might have been a response to recent state legislation that significantly stiffened penalties for possessing, selling or manufacturing the drug, much of which is smuggled here from the Netherlands, Britain and Israel. Under a law signed by Gov. Christine Todd Whitman in early July, the sale of Ecstasy is a first-degree crime with a sentence of up to 20 years, comparable to the penalties for selling heroin and cocaine. Previously, distributing or possessing Ecstasy was a third-degree offense, and until the mid-1980's it was not even illegal in New Jersey. Once largely associated with big-city clubs and European raves, Ecstasy has become a part of suburban youth culture, alarming parents and law enforcement officials. In 1998, more than 750,000 pills were seized by the United States Customs Service. Last year, the number was 3 million. "Ecstasy use is exploding in New Jersey," said Paul Zoubek, first assistant state attorney general. "It's something we're very concerned about." Investigators said they thought most of the pills seized when Mr. Gregorio and Mr. Juliano were arrested last weekend were bound for clubs along the Jersey Shore, where the number of Ecstasy arrests and overdoses has risen sharply in the last few years. They estimated that the pills, which cost $5 to make and between $20 and $30 for a person to buy, had a total street value of about $1.5 million. It was the second-largest seizure of Ecstasy in the state, officials said. (About 200,000 tablets were found in a suitcase at Newark International Airport last year.) "It's shocking that these two kids were dealing in such heavy quantities," said Capt. Edward Green of the Neptune Police Department. "But then again there is a huge market now, young kids who are just scarfing this stuff up." Investigators said they were trying to determine where Mr. Gregorio and Mr. Juliano had bought the pills and whether they were part of a larger group of dealers. They said the two men had rented a self-storage unit on Route 66 near here, where they kept a duffel bag containing 45,000 pills. In addition, 4,000 Ecstasy pills, 6 pounds of marijuana and $4,450 in cash were found in Mr. Gregorio's car, they said. Robert A. Honecker Jr., an assistant Monmouth County prosecutor, said investigators were led to the storage center after a Neptune man whose wallet had been stolen notified the police that his driver's license had been used to rent space. "The guy got a billing notice," Mr. Honecker said. "It turned out Gregorio had stolen the wallet and recreated a new identity using his own photo and this guy's I.D." After cutting the lock and finding the drugs, the authorities said, they waited until Mr. Juliano came by Saturday evening and tried to enter the locker. They arrested Mr. Gregorio later at his apartment in Asbury Park. Mr. Juliano, 23, is being held on $500,000 bail at the Monmouth County Jail in Freehold Township. Early today, investigators found a 9-millimeter gun and $131,700 hidden in a house in Tinton Falls rented by Mr. Juliano, who is from Bethlehem, Pa., the authorities said. After the arrest, Mr. Gregorio was alone in his cell at the Neptune Police Station, and officials said the guards had checked on him only minutes before he was found dead at 3:55 a.m. on Sunday. The authorities said Mr. Gregorio's only previous brush with the law occurred last year when he served 45 days in Ocean County for the possession of amphetamines. Over the last five months, law enforcement officials in Sayreville have arrested and charged more than 40 people with possession and sale of Ecstasy at local clubs. Last month, the liquor license of Delirium, a Margate dance club, was suspended after employees and patrons were charged with distributing the drug. - --- MAP posted-by: Terry Liittschwager