11 connected to cocaine ring

COEUR d'ALENE - At least 11 more people have been arrested in connection to a reported cocaine ring between Washington and Coeur d'Alene.

The arrests stem from a multiple law enforcement agency investigation that included the February 2009 arrest and 2010 sentencing of former Coeur d'Alene insurance agent Jerald "Jerry" S. Carlson on a cocaine-related charge.

According to an Idaho State Police affidavit filed in 1st District Court, the Carlson investigation led to the arrest of James R. "Slim" O'Neill in May. O'Neill was apprehended with nine other people, including former Chillers bar owner Christopher McFarland, in Coeur d'Alene for allegedly trafficking and possessing drugs - mostly cocaine.

The affidavit, filed July 30, said Carlson's arrest "subsequently identified" O'Neill "as a cocaine trafficker living in Coeur d'Alene."

After O'Neill and McFarland's arrests, McFarland told investigators that Carlson was a frequent customer of O'Neill's, and that after Carlson was arrested, O'Neill "was worried," according to ISP interview reports filed in court.

O'Neill, 48, and McFarland, 48, also reportedly provided dozens of names to ISP investigators during interviews after their arrests of people who allegedly bought, distributed, or sold cocaine, heroin or marijuana after 2003.

Officers have since arrested at least 11 of those people and are charging them in 1st District Court with cocaine trafficking, or possession of a controlled substance, all felonies. They are scheduled to appear for their preliminary status conference hearing at 8:30 a.m. Tuesday, Aug. 24. Their actual preliminary hearing is scheduled for 1:30 p.m. Thursday before 1st District Judge Barry Watson.

The 11 and their charges are: Diane T. Moreno, 44, trafficking; Michael G. Rice, 48, trafficking; Cynthia M. VanSlate, 45, trafficking; Shaun R. Williams, 49, possession; Kent R. Winn, 49, trafficking and possession with intent to deliver; Wayne R. Cofield, 52, trafficking and possession with intent to deliver; Jennifer L. Fitzgerald, 47, trafficking; Shelley L. Ourada, 46, trafficking; Stephen A. Heberer, 49, trafficking; Christina Johnson, 44, possession of cocaine and possession of marijuana; and Michael Sadrianna, 51, trafficking.

The violations reportedly occurred between August 2005 and June 2008. The suspects were arrested following the July 30 warrant, and have posted bond, according to Kootenai County jail staff.

Kootenai County, ISP and U.S. Attorney Office authorities would not comment on the case. But defense attorney Gary Amendola, representing Rice, said the state is considering the cases related.

Amendola said the state believes there was "a distribution ring associated with a lot of the people named."

Amendola added that the charges weren't warranted, and he said O'Neill gave the investigators unsubstantiated information to help O'Neill in his own pending federal case.

"There's not even allegations of how much (drugs were allegedly possessed)," he said, calling the charges a "smear campaign."

"They're going on what 'Slim' said. His statements alone are incredibly weak. He's doing it to help himself in his own federal case."

According to a summary of O'Neill's two June interviews with ISP detectives, O'Neill sold cocaine to various customers usually by increments of ounces: One-sixteenth, one thirty-second, quarter, or half. Marijuana and heroine were also obtained and sold, and some of the reported dealing didn't have amounts described, although others did. O'Neill told detectives his supplier was Manuel Rivera - who was arrested with O'Neill in May - of Kennewick, Wash. Reports said Rivera, 34, supplied O'Neill with nine ounces of cocaine every three weeks.

Carlson, arrested in 2009, was sentenced Aug. 2 to 27 months in federal prison for conspiracy to possess with intent to distribute cocaine.

The ISP affidavit said Carlson's arrest led to O'Neill.

On May 25, O'Neill and Rivera were arrested in a multi-agency drug bust that also apprehended O'Neill's wife, Lecia O'Neill, 44, and McFarland.

Coeur d'Alene residents Gary Votava, 51, Stephen McCabe, 51, and Debra Margraff, 48, were also arrested in the May bust. Those seven people face federal charges of conspiracy to distribute a controlled substance and conspiracy to launder money.

Each faces a mandatory minimum sentence of 10 years in federal prison, with the possibility of a life sentence and up to $4 million in fines, according to a press release at the time of the arrests.

The original complaint filed by the Drug Enforcement Agency in federal court stated that O'Neill distributed drugs to a "close-knit clientele" of friends and family in the area for around 20 years.

Chillers bar, 1920 E. Sherman Ave., was a location for some of the drug deals, the complaint states. The bar has since been sold to new owners.

Three other people were arrested on state charges in the May sting.

James W. Lunceford, 51, Kelli R. Lunceford, 46, and Michael G. Wachholz, 47, were arrested for possession of a controlled substance.

James Lunceford is scheduled for a plea change hearing Sept. 2 at the Kootenai County Courthouse and Wachholz's trial is set for Oct. 4.

Kelli Lunceford's case was sealed, so an update since the arrest wasn't available.

The Idaho State Police, DEA, FBI, U.S. Marshals Service, Coeur d'Alene Police Department, Kootenai County Sheriff's Department and prosecutor's office, North Idaho Violent Crimes Task Force, the U.S. Forest Service, and agencies from eastern Washington assisted in the investigation.