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The 36-year-old man was detained by officers from Cleveland Police’s County Lines Team who executed the warrant at a property on Lilac Road.
A search of the home led to a quantity of cocaine being located and seized.
Following the recovery, the man was arrested on suspicion of possession with intent to supply class A drugs and money laundering.
After being transported to custody and questioned by officers, he was released on conditional bail while the investigation continues.
The warrant was executed on Friday 23 August and supported by Stockton’s neighbourhood policing team and Matrix officers.
Detective Chief Inspector David Glass said: “By acting on information received, police have seized drugs that we suspect would have been supplied to vulnerable people living in our community.
“I want to take this opportunity to encourage members of the public to keep being our eyes and our ears by reporting drug activity that is occurring in your area.
“This enables our officers to build an intelligence picture that leads to warrants and arrests to take place as well as drugs and money being seized.”
If you have information relating to drug activity, please call Cleveland Police on 101 or visit our website.
If reticent to come forward, please contact Crimestoppers anonymously on 0800 555 111.