The Rockford Police Department says James Horton, 27, of Rockford was arrested after a traffic stop near 15th Avenue and 10th Street.
Police stopped a 2007 Ford Edge for a registration violation on Feb. 8 at about 2 a.m. A parolee, Leroy McFadden, 38, of Rockford, was driving the vehicle, and Horton was in the passenger seat, according to officials.
A Winnebago County K-9 unit was called which alerted officers to the presence of drugs, according to police. Officers then searched the vehicle, recovering a loaded handgun, 35 grams of cannabis, a digital scale and a large amount of money.
Horton was arrested for armed violence, aggravated unlawful use of a weapon and possession of cannabis with intent to deliver.
McFadden was cited for operating an uninsured vehicle and expired registration. McFadden's vehicle was impounded, and he was released.