DEA SAYS COKE BUST MAKES MAJOR DENT

But new suppliers are likely to fill the void eventually, agent
says

By Gretchen Schuldt and Joe Williams of the Journal Sentinel
staff

A Drug Enforcement Administration official contended Friday that the
dismantling of a drug ring alleged to have sold a ton of cocaine in
Wisconsin over the past few years "is going to make a major dent in
the trafficking pattern right now."

DEA Group Supervisory Agent Raymond Melick said the area cocaine
supply likely would be affected for six months or so, until new
suppliers fill the void.

Lonnie Peterson, 30, who operates a pager business, and his mother,
Patsy, 55, a teacher at Sarah Scott Middle School, were indicted by a
grand jury for their alleged participation in the ring.

Patsy Peterson has been suspended with pay on an "emergency
misconduct" order, school officials said Friday.

Patsy Peterson, who was arrested at her school, is accused of
collecting and delivering drug proceeds and keeping records of the
transactions.

Melick said the teacher was arrested Wednesday after being called to
the principal's office.

She was escorted by agents from the building and was not handcuffed,
he said.

Kathleen Kirchoff, an MPS spokeswoman, said the district had no
information that indicated Peterson was doing any of the alleged drug
work at the school or on school time.

She said that if Peterson is released from jail, she will have a
hearing on her job status, as provided in the teacher contract.

"We immediately have the authority to take the teacher out of the
classroom, and she is suspended until a hearing can take place,"
Kirchoff said.

The alleged drug ring, said to have been run by family members and
associates of Lonnie Peterson, is believed to have rung up about $2
million in profits from March 1995 through at least December 1997.

The investigation began about two years ago and included the DEA,
Internal Revenue Service, the Milwaukee Police Department and the
State Division of Narcotics Enforcement.

U.S. Attorney Thomas P. Schneider said Friday: "No one case is going to
change the nature of drug-trafficking. The cumulative effect (of several
cases) will have an impact."

While federal authorities in the area have concentrated on larger
dealers and drug operations, "that is in addition to the significant
number of street dealers being busted every single day, every single
week, every single month and going into the state system," he said.

Lonnie Peterson was charged with nine counts of conspiracy, cocaine
distribution, using a communication facility in the commission of a
felony and money laundering.

Patsy Peterson was indicted on six counts of conspiracy, using a
communication facility in the commission of a felony, and money
laundering.