MUNCIE, Ind. -- A Muncie man was arrested Thursday after a confidential source reportedly led Muncie police to witness a reported drug transaction outside a local hotel. According to court documents filed on Friday in Delaware County, 32-year-old Aaron Sneed was preliminarily charged with: One count of dealing cocaine or narcotic, a Level 2 felony One count of possession of cocaine or narcotic drug, a Level 3 felony One count of obstruction of justice, a Level 6 felony. At around 8 p.m. on Thursday, officers with the department were surveilling a blue Nissan Sentra parked at a hotel on N. Everbrook Lane. Documents state that officers were given information from a confidential source that Sneed distributed narcotics out of his vehicle at this location. When officers were at the location, they reportedly saw a silver SUV drive up to the Sentra in the parking lot. A person exited the SUV and went inside Sneed's vehicle for around 30 seconds. The person then exited Sneed's vehicle and left. IMPD: Officer hit by car, driver shot near CVS on Indy’s near north side After the Sentra left the hotel, a traffic stop was initiated in front of a restaurant on West McGalliard Road. The documents said that during the stop, a K9 indicated the presence of narcotics in the car. Around the area of the traffic stop, officers reportedly located a clear plastic bag containing "a light tan powder-life substance believed to be heroin and/or fentanyl." The documents said that they located a digital scale with powder-like residue, plastic bags as well as an additional plastic container with more of the powder-like substance. The passenger in the vehicle, who was taken into custody because of "multiple active warrants for her arrest" reportedly told officers that she knew Sneed was a narcotics dealer and had narcotics on him before the vehicle was pulled over in the traffic stop. In an interview with Sneed, he reportedly admitted to possessing the paraphernalia, as well as throwing the bag of suspected drugs out of the car while being stopped by police. Police find remains in same location where missing southern Indiana mother was last seen "It is clear Sneed attempted to dispose of and/or remove the suspected heroin from the vehicle in an attempt to prevent police from locating this to be used as evidence against him," the documents read. Officers with the Muncie Police Department said that more than 20 grams of the suspected substance was found during the traffic stop.