THE BRONX - Three suspects were arraigned Friday on charges they used a Bronx day care for a covert drug operation.

Two of the suspects have been identified as day care operator Johanna Vasquez and Gregorio Hanley. Police say they led a drug ring out of Fun World Childcare on Rosedale Avenue, and discovered $180,000 in cash, $80,000 worth of narcotics and a 9 mm handgun all on the premises. In addition, 300 grams of cocaine was found in a lunchbox.

Vasquez and Hanley pleaded not guilty to multiple counts of criminal possession of a controlled substance, criminal use of drug paraphernalia, endangering the welfare of a child and a slew of other crimes. Hanley's bail has been posted at $500,000, while Vasquez's was set at $100,000.

An accused drug buyer, identified as William Ferrer, was also arrested and charged.

The investigation is ongoing.