Gang's local leader, Jose Diaz, was arrested July 30 on felony narcotics charges

Gang's local leader, Jose Diaz, was arrested July 30 on felony narcotics charges, she said.Investigators found $86,000, seized nearly 9 pounds of cocaine and recovered four handguns during their probe, Brennan said. Diaz wired $40,000 to $50,000 a week in drug proceeds to associates in Puerto Rico, prosecutors said. On June 5, a Connecticut resident bought cocaine hidden in a child's pegboard stool, Brennan said. The cocaine was still inside the stool when investigators recovered it near Waterbury, Conn., she said.The nine were indicted Aug. 29 on charges that included conspiracy, criminal sale and possession of a controlled substance, money laundering and weapons possession. They pleaded not guilty at arraignment in Manhattan's state Supreme Court.Six were held without bail, two were released without bail and one was held in $35,000 bail. They were ordered to return to court Oct. 6.