Sarnia police were called to a report of a man with a gun in the area of an Exmouth Street shelter Friday.
Police arrived at 5 p.m. when they contained a group of four people, including a man who matched the gun suspect.
Police conducted a high-risk arrest and all four were taken into custody.
Police said no firearm was located.
When officers searched one of the suspects they allegedly found nine grams of fentanyl and seven torch style lighters inside of his backpack.
Officers said the one torch style lighter replicated a life sized handgun.
Police found out the man was on court-imposed conditions not to possess incendiary devices.
A 49-year-old man was charged and held for bail.
The three other people were released unconditionally.