Two men were caught conducting a drug transaction in the city early Monday morning, according to Passaic County Sheriff Richard Berdnik.

Terence James, 41-year-old, and John Nero, 44-year-old, were observed conducting a drug transaction in the city at around 6:45 a.m. on Monday. James and Nero were observed exchanging suspected heroin and crack cocaine on a city sidewalk, Berdnik said.

James was on a 1999 red Suzuki motorcycle with expired registration, Nero approached James and started a conversation at which point Sheriff’s Officer Luis Pagan observed the two engage in an alleged drug transaction.

Nero tried to secure the drugs in his pocket and leave the area, but he was stopped by authorities. Authorities found 27 glassines of heroin and 22 zip lock baggies of crack cocaine with street value of $500.

Sheriff’s Officers Pagan and John Tolerico also placed James under arrest. $2,344 in suspected drug proceeds was recovered from James, Berdnik said.

James was charged with drug possession, possession with intent to distribute 1,000 feet of a school. James was also found to have a $600 criminal warrant. Nero was charged with drug possession, possession with intent to distribute within 1,000 feet of a school.

Nero was released pending municipal court appearance and James was transferred to Paterson police lockup awaiting bail.