Federal agents say they have arrested two men and are accusing them of involvement in counterfeiting.

Arrested were Dennis Prater, 29, and Terrance Schaffer, 33, both of Luverne, Minn. Prater appeared in court in Sioux Falls Thursday, and Schaffer posted $3,000 bond Thursday in Nobles County, Minn.

Authorities say Prater spent two fake $100 bills at Sioux Falls fast-food restaurants. They also say counterfeit bills were passed in the Minnesota cities of Worthington and Adrian.

The two were arrested Tuesday in Luverne, according to Rock County, Minn., Sheriff Evan Verbrugge.

U.S. Attorney Marty Jackley of Sioux Falls says counterfeiters bleached portions of $5 bills and used a color printer to replace the $5 denomination with $100.

Schaffer faces a charge of possessing counterfeit U.S. currency.

Jackley says the investigation continues.