SEDALIA, Mo. -

Sedalia police arrested three people in connection with a suspected drug operation Thursday. Two were arrested Thursday morning, and the third was arrested late Thursday night.

Shortly after 5 a.m., detectives and officers with a K-9 unit searched a home in the 1000 block of South Carr Avenue. Officers say they found methamphetamine and materials to pack and distribute it inside the home. Police believe the drug was being sold inside the home.

Two people were arrested on suspicion of possessing meth and paraphernalia: Esther Dean, 35, and John Welch, 33. Because the home is within 2,000 feet of Horace Mann Elementary School, Dean is also suspected of distributing methamphetamine near a school.

While investigating the home, police identified the location where Dean's alleged supplier could be found. Working with the Mid-Missouri Drug Task Force, officers searched a home on Highway T in La Monte shortly before midnight Thursday.

Officers reported finding meth and cocaine, as well as materials for packing and selling drugs. Police believe drugs were being sold from this home as well. They arrested Michael Stewart, 52, on suspicion of drug trafficking, distribution of meth near a school (Pettis Co. R-XII Dresden), and possession of cocaine, meth, and paraphernalia.

All three were formally charged. Stewart is being held on $500,000, Dean on $50,000, and Welch on $25,000 and $2,500 cash or surety bonds.