SALEM – A Lynn man caught by police with over 200 nude images of children on his computer by police following an undercover sting was one of two Lynn men indicted Wednesday afternoon by an Essex County grand jury.Walter Esteras, 22, of 115B Commercial St., Apt. 2, Lynn, is facing seven counts of possessing child pornography as well three counts of dissemination of child pornography.The allegations contend between Feb. 1, 2010 and June 17, 2010 Esteras shared computer files containing child pornography with an undercover State Trooper posing as an interested participant.Police executed a search and reportedly recovered over 200 child pornography photos from his computer along with videos containing child pornography.The indictments handed up now move the case from Lynn District Court, where Esteras has pleaded not guilty, to Salem Superior Court.In the meantime, Esteras remains free on $2,000 cash bail with the condition he may not use or possess a computer and not reside with children under the age of 16.Assistant District Attorney Kristen R. Buxton is prosecuting the case for the state.Also indicted was:Charles Davis, 31, of 283 Eastern Ave., Lynn, charged with possession of cocaine with the intent to distribute, second offense, possession of marijuana with the intent to distribute, subsequent offense and possession of heroin. Davis was arrested in Lynn on March 15.Indictments are not an indication of guilt: rather it is a legal process that allows a case to be transferred from Lynn District Court to Salem Superior Court, allowing for a more severe penalty.