Authorities say a man spotted in a drug transaction on the 4500 block of Lewis Ave. in the unincorporated area of Eureka is under arrest. He was one of two men seen and while other man took off in a vehicle, police say 28 year old Jared Nelson ran into a nearby residence. He was caught there. Deputies searched Nelson and found ammunition, approximately two grams of suspected heroin and counterfeit money. They also found a loaded pistol and a sawed off shotgun they say belonged to Nelson. He was booked into the Humboldt County Correctional Facility.