An investigation into methamphetamine dealing has led to three arrests.

Christopher C. Caudill, 31, of Austin, and LeRoy Yarbrough of Seymour, were arrested by Detective Brian Moore after he said he saw a transaction among three men in a parking lot on the southeast side of the city. The third man was not identified, according to court documents.

Moore said he talked with Caudill and Yarbrough outside a convenience store in the area. After police found a plastic bag contai ing what was later identified as methamphetamine in one of his pockets, Yarbrough was arrested on a charge of possession of methamphetamine, a Level 6 felony, according to court documents.

Caudill was arrested on charges of possession of methamphetamine and maintaining a common nuisance after police found a set of scales with a white residue on them in his vehicle, Moore said. He also said he found cash on Caudill, who said he had recently sold a car. The money, however, was money Seymour police had supplied to a confidential informant for an undercover drug buy.

The charge of maintaining a common nuisance was filed because drugs and paraphernalia were found in his vehicle, according to court documents.

K9 Officer Adam Surface later discovered meth on the inside of the front passenger seat door of his police car, which was where Caudill was sitting while being taken to jail.

The third arrest involved a controlled buy on Saturday. Ryanne J. Snodgrass, 28, of Seymour was arrested Tuesday on a charge of possession of methamphetamine. According to court documents, he sold a confidential informant $100 worth of methamphetamine.

Snodgrass was being held without bond Thursday morning at the jail.

Caudill and Yarbrough faced initial hearings Wednesday in Jackson Circuit Court and were being held on $1,500 bond each.

No trial dates have been set.