Authorities said they stopped Anthony Canale Jr. around 4:20 p.m. near State Route 15 and Sullivan Trail because his registration wasn't legible.
The officer claimed he had "reasonable suspicion to believe there were narcotics and a firearm in the vehicle," but said 28-year-old Canale declined to let him search the car.
The officer called for a canine unit, which "positively alerted on the vehicle for narcotics," according to the department. The car was towed and held until authorities obtained a warrant, police said.
Inside, investigators said they found a 9mm SIG Sauer P365 handgun reported stolen out of South Carolina, a 16-round magazine, a holster, and 79 rounds of ammunition, along with two "small" bags of cocaine, a "package" of marijuana, and drug paraphernalia.
State police arrested Canale at his Milford home on Wednesday, Dec. 20, and charged him with receiving stolen property, unlicensed firearm carry, and related counts, authorities said.
Court records show he was released on $10,000 bail and has a hearing scheduled for Dec. 27.
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