Arrests made in widespread drug sting

A massive multi-state drug investigation ended last month with arrest warrants issued for 21 people, including three people from Cloquet.

According to a Duluth Police Department press release, the Lake Superior Drug and Violent Crime Task Force investigation spanned three states — Illinois, Wisconsin and Minnesota — and roughly six months.

In June 2021, members of the task force began investigating a Chicago-based drug-trafficking organization (DTO) that transported substantial quantities of fentanyl and heroin from Chicago to Duluth. The fentanyl and heroin were then distributed by members of the group to local dealers who sold the drugs throughout Duluth, Cloquet, St. Louis County, Carlton County, Fond Du Lac Reservation and Bad River Indian Reservation in Wisconsin.

Twenty-one people were charged in St. Louis County District Court in January, although warrants remained for six of the accused as of Tuesday, Feb. 1.

According to the criminal complaint in the case, Chicago resident Nicholas Calloway, 23, was the leader of the DTO. Calloway directed the transportation of heroin and fentanyl from Chicago where it was distributed to mid-level drug dealers in the area.

The task force utilized undercover investigators to infiltrate the organization. Investigators would contact Calloway, who primarily ran the organization from Chicago. Calloway orchestrated pickup times and meeting locations between buyers and local dealers over the phone.

Widespread

According to the criminal complaint, Calloway would often send out mass text messages to as many as 41 customers, advertising that he had heroin for sale. Officers then observed Calloway take drug orders and direct his customers to his drug runners to complete heroin and fentanyl sales. Customers would contact Calloway for both “raw” or straight heroin or “fetty,” meaning straight fentanyl.

“In 2021, there were 42 opioid overdose deaths and another 346 non-lethal opioid overdoses in St. Louis County,” said St. Louis County attorney Kim Maki. “One reason for these staggering numbers is the increasing prevalence of fentanyl, a synthetic opioid that is extremely addictive and lethal in tiny doses.”

Investigators made 20 undercover purchases from various DTO members during the investigation and also obtained a wiretap warrant for Calloway’s phone starting in October 2021. During the months-long investigation, law enforcement discovered that between June 2021 and December 2021, the DTO was responsible for transporting and selling over 10 pounds of heroin and fentanyl, which has a street value of $725,600 and is approximately 18,140 doses. Law enforcement actually seized one firearm, $9,101 in cash, and more than 500 grams of heroin and fentanyl mixture, which has a street value of $80,000 and is approximately 2,000 doses.

Cloquet connections

The arrests last month included three Cloquet residents: Jolisa Henagin, 22; Madison Pallin, 25, and Amber Wait, 37.

Henagin had an omnibus hearing in Sixth District Duluth Court on Tuesday. She faces two first-degree charges of felony controlled substance crime in the first degree, with aggravating factors, along with a charge of aiding and abetting arson first degree, and conspiracy to commit arson. Other charges include conspiracy to import controlled substances across state lines and fraudulently trafficking SNAP card benefits.

According to the criminal complaint, Henagin allegedly drove Calloway to some of his local sales and also acted as a runner, allegedly making drug sales at his direction. He also stayed at her residence on 11th Street in Cloquet on and off during the fall of 2021 and she allegedly drove to Chicago on more than one occasion to bring money to Calloway and/or pick up drugs to bring back to northern Minnesota. According to the complaint, officers photographed and videotaped many of Henagin’s sales.

Henagin is also accused of helping Calloway set an apartment on fire in the Gary New Duluth neighborhood. The fire caused extensive damage to an apartment and resulted in the death of a resident’s cat. The resident of the apartment was assaulted and threatened during the arson because of a drug debt owed to Calloway.

Calloway, Henagin and Duluth resident Mark Scharnott, 33, are also charged with conspiracy to commit arson in the first degree. Calloway and Scharnott plotted to burn down a duplex in the East Hillside neighborhood of Duluth, and Henagin drove Scharnott to the neighborhood. Duluth Police and Task Force Investigators learned of the plot and derailed the attempted arson.

Henagin and Wait are alleged to have met in Cloquet five different times in November so Wait could purchase heroin/fentanyl.

Investigators identified Calloway’s source of supply as Chicago resident Demetrius McCafferty, 34. Both Calloway and McCafferty are currently awaiting extradition to Minnesota.

“Dismantling a DTO of this scale limits the source of supply of these poisons to the people of St. Louis County and the city of Duluth and undoubtedly saved lives,” said Duluth police chief Mike Tusken. “Our talented and substantial coalition of dedicated law enforcement partners time and time again demonstrate that the people peddling these poisons cannot hide in the shadows and cause harm to the people of our community without detection and accountability.”

Arrests

In addition to the Cloquet arrests, the following individuals were arrested in January:

From Chicago: Nicholas Calloway, 23; Demetrius McCafferty, 34, and Jerome Falkner, 24.

From Duluth: Michael Berg, 26; Michelle Jacobson, 33; Brock Jensen, 24; Brodey Jensen, 24; Mark Scharnott, 33; and Alexis Steltz, 24.

Also arrested were Eveleth resident Jonas Treston Starkey, 27, Gilbert resident Leonard Kochevar, 39, and 23-year-old Ashland resident Hailie Pralle.

Arrest warrants have been issued for Chicago residents Chad Mims, 22; Melvin Little, 25, and Terry Sallay, 22; Duluth resident Ryan Vincent, 38; Mississippi resident Montavian Oliver, 24, and 22-year-old Minneapolis resident Zachery Morris Jr. Anyone with information on their whereabouts is asked to call 218-730-5750.

“Cases like these are time- and labor-intensive, but are essential to removing drug trafficking organizations and lethal opioids from our neighborhoods,” said task force commander Jeff Kazel. “Our community is fortunate to have the men and women of this team working to save lives through law enforcement and victim outreach efforts.”

Other participating agencies included the St. Louis County Attorney’s Office, St. Louis County Sheriff’s Office, Carlton County Sheriff’s Office, Superior Police Department, Cloquet Police Department, the U.S. Marshals Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Homeland Security’s Homeland Security Investigations.

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Seeking help with opioid addiction? Confidential help is available through the Substance Use Response Team hotline at 218-730-4009.