INDIANAPOLIS — Two inmates housed at different Indiana prisons ran a drug ring that distributed methamphetamine and heroin thanks to cellphones smuggled in by guards, according to a federal indictment that charges 40 people in connection with the scheme.

An indictment unsealed Wednesday alleges that the purported ringleader, Oscar Perez, and an inmate at another prison, Justin Addler, even conference called with a third man using smuggled cellphones to discuss "pooling their financial resources" to get a discount on heroin.

At least 17 people appeared in court Wednesday in Indianapolis after about 300 FBI agents fanned out across the state and made arrests. A judge ordered them to remain in custody. Only one prison guard was among those charged, though the indictment alleges several were involved. Prosecutors declined to say if more charges were expected.