Federal prosecutors have indicted Spencer Hill on federal drug conspiracy charges. He’s suspected of dealing methamphetamine and heroin.

Assistant U.S. Attorney Jack Schmidt is prosecuting the federal case from Juneau. He said the scale of the bust led the feds to pick up the case.

“Mainly based on the quantity involved and the distribution,” he said.

Ketchikan police arrested the Bellingham resident in November at a local hotel. Authorities said Hill had almost half a pound of meth and a stolen .22-caliber pistol.

Later that month, police say they found 3.2 pounds of meth and 1.79 pounds of heroin in the suspected dealer’s safe-deposit box. The total street value of the drugs is estimated at more than $1 million if separated into individual doses.

Hill pleaded not guilty to the state charges. State prosecutors in Ketchikan dropped their case against Hill Monday after the federal indictment.

Federal prosecutors declined to comment on whether they suspect any co-conspirators in the case.

Hill is charged with two counts of possessing a controlled substance with intent to distribute and one count of weapon possession in furtherance of drug trafficking crimes.

Federal prosecutors say Hill is scheduled to be arraigned Thursday, Jan. 9 in Juneau.