Ten charged in drug bust

COEUR d’ALENE — Ten people are facing charges as authorities investigate an alleged drug trafficking ring between Coeur d’Alene and eastern Washington.

Federal and state agents raided several homes and businesses Tuesday in conjunction with the reported ring, which moved and distributed cocaine and marijuana between Kennewick, Wash., and Coeur d’Alene.

Nine of the defendants are from Coeur d’Alene. Seven are facing federal charges while the remaining three are facing state charges.

The “significant” cocaine supplier of the alleged operation was identified as James R. “Slim” O’Neill, 48, of Coeur d’Alene, in a criminal complaint filed by the Drug Enforcement Agency in federal court on Wednesday. The complaint states that O’Neill distributed drugs to a “close knit clientele” of friends and family in the area for around 20 years.

O’Neill’s wife, Lecia O’Neill, 44, was also arrested Tuesday.

Both are facing conspiracy to deliver charges for intentionally distributing five kilograms or more of the narcotics between January 2000 and May 2010.

The DEA report alleges O’Neill used the drug money to finance his family vacations, which included frequent trips to the Daytona 500 races in Florida, Disneyland and other destinations, as well as to purchase vehicles, snow mobiles, go-karts, a motorcycle and a boat.

Those items were seized Tuesday.

According to an affidavit filed by DEA Special Agent William Lutz, out of the Boise office, O’Neill claimed he made a total of $3,060 as a roofer between 1998 and the second quarter of 2009. Detectives couldn’t find any evidence that O’Neill had any roofing equipment to carry out the work and documented while he was under investigation that O’Neill didn’t maintain a work schedule.

O’Neill was ordered to remain in custody on Wednesday during his initial appearance at the Federal Courthouse in Coeur d’Alene, while his wife was released under several conditions, including submitting to drug tests and electronic monitoring until trial.

Lecia O’Neill is accused of being involved in the financial transactions with the ring, making deposits to the family’s bank accounts with money obtained through the trafficking, the DEA said.

Included in the sting was Chillers bar at 1920 E. Sherman Ave.

Owner Christopher McFarland, 48, was arrested under suspicion of using his bar as a location “to use and facilitate drug transactions,” according to the complaint.

James O’Neill frequented the bar often, sometimes several times a day, with stops ranging from a few minutes at a time or overnight. Chris McFarland was also ordered to purchase cocaine from suppliers when O’Neill was unavailable, the reports state.

On May 19 an undercover officer went to the bar and observed the bar’s bouncer, who patrons identified as “the go-to guy,” conduct what appeared to the investigator as hand-to-hand drug transactions, as well as several suspected transactions in the bar’s bathroom, including one with James O’Neill.

During the course of the investigation, officers estimate that O’Neill distributed more than 15 kilograms of cocaine in the last seven years. Between September 2009 and March of this year, confidential informants were able to make six controlled purchases of cocaine from the suspect.

They also searched O’Neill’s trash and found cocaine and marijuana as well as financial statements that, despite his income reports, showed O’Neill was depositing approximately $2,500 a month, according to the DEA. Between February of 2004 and February of 2010, the family deposited roughly $200,000 into their accounts.

Lecia O’Neill also had little income and the couple had three children at home, the reports state.

Co-defendants in the case include Gary Votava, 51, of Coeur d’Alene, who owned a trailer which O’Neill allegedly used as a stash house to store drugs.

Manuel Rivera, 34, of Kennewick, Stephen McCabe, 51, of Coeur d’Alene, and Debra Margraff, 48, of Coeur d’Alene, were also arrested.

Each of the seven federal defendants face a mandatory minimum sentence of 10 years in federal prison, with the possibility of a life sentence and up to $4 million in fines.

Margraff was released Wednesday under the same conditions as Lecia O’Neill while Chris McFarland was held in custody awaiting pretrial conferences.

Initial appearances for McCabe and Votava are at 10 this morning at the Federal Courthouse in Coeur d’Alene.

Kootenai County Prosecuting Attorney Barry McHugh confirmed three other individuals were arrested in connection to the drug raid, and are facing state charges.

James W. Lunceford, 51, was released on $25,000 bond from jail Wednesday for possession of a controlled substance. Kelli R. Lunceford, 46, posted a $15,000 bond and Michael G. Wachholz, 46, posted $25,000 bond for the same charge.

The Idaho State Police, DEA, FBI, U.S. Marshal’s 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.