Ex-MLB pitcher Esteban Loaiza was dealing $500,000 in cocaine from a home located steps away from a preschool ... and was using "sophisticated" devices to hide it, cops say.
The San Diego County Sheriff's Dept. is now releasing details about Loaiza's Feb. 9 arrest -- saying he was busted during a drug-smuggling sting by the Border Crime Suppression Team.
Loaiza was initially stopped by police during a traffic stop for a minor traffic violation -- but a search of his car led to the discovery of a "sophisticated aftermarket compartment used to conceal contraband."
Cops then got a warrant to search a home that Loaiza had been renting since early February -- located "steps away from an area preschool" -- and found roughly 20 kilograms of suspected cocaine.
Estimated street value -- $500,000.
Loaiza was booked into San Diego County Jail for 3 felonies -- Possession of Cocaine Over 20 Kilograms, Possession of Cocaine for Sale, and Transportation of Cocaine.
His bail was set at $200,000.