TOMBSTONE — Two people were arrested Thursday on drug charges at a Tombstone motel as part of an investigation which arose from reports of counterfeit money being circulated in the city, according to Marshal Bob Randall.

Jared Richard Losey and Christine Correll Ballard were taken into custody on multiple felony charges, including possession of methamphetamine and marijuana for sale, and endangering a minor.

Ballard, 32, was also booked on suspicion of forgery and fraud for allegedly passing counterfeit $100 bills on two occasions at a local business.

In an interview Friday, Randall explained his agency received a report about counterfeit money on April 26.

Ballard was identified as a suspect in that case, but during the investigation deputies received what the marshal termed “credible information” that Losey, 35, was selling drugs out of a residence he shared with Ballard at the Budget Host Motel.

On Thursday, the TMO obtained a search warrant for the residence. Deputies, with assistance from Arizona Department of Public Safety investigators, seized marijuana, meth, and what is suspected to be heroin, along with several loaded hypodermic needles, baggies, and a scale, Randall said.

An 8-year-old child who lived at the motel with the couple was placed with relatives while a referral is made to the Arizona Department of Child Safety, he added.

Randall noted that Losey’s position as a handyman at the motel allowed him access to empty rooms.

“One such room was located adjacent to Losey’s room,” the marshal explained. “We received permission from the property owner to search the room and found a trap door which led to a large cavernous crawl space under the rooms.”

A deputy was able to crawl through an opening and discovered additional evidence of illicit drug activity.

Ballard is being held in the Cochise County Jail in lieu of $12,500 bail. She is expected to be back in court next week.

Losey was also to be taken to jail after his arrest but instead was taken by ambulance to Canyon Vista Medical Center after he claimed to have consumed a large amount of meth.

Once Losey was admitted, the TMO received a court order to release him from custody so he could obtain medical treatment.

Randall said formal charges were to be filed once Losey was medically cleared.

However, deputies learned Losey checked himself out of the hospital a short time later, with no apparent indication of any overdose. He was re-arrested Friday and will have bail set at his initial court appearance.

According to public records, Losey completed parole in 2017 as part of a five-year prison sentence for a dangerous drug offense out of Pima County.

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