MORNINGSIDE, Md. - Sources say the police chief of Morningside has been fired for a violation of town policy, one day after ABC 7 News uncovered disturbing allegations of gun sales being made out of the back of his squad car.

The Attorney for the town, however, says no charges have been filed against Police Chief David Eichelberger at this time.

The news comes after Prince George's County's multi-angecy gun interdiction squad raided the Morningside Police Department Thursday. Officers emerged Chief Eichelberger, who was then escorted to his Accokeek home, where police searched his house and cars.

Police were investigating a claim by the owner of Morningside business that Eichelberger sold him a 40-caliber Glock handgun and a Mossberg shotgun out of the trunk of his police car for $600.

"Yes he sold me the handgun," said Charles Thompson. "He was in his police car, he backed the car into my bay, opened up his trunk, and showed me the weapons he was selling."

Thompson contacted ABC 7 News to complain about a separate matter, but one of the things he told ABC 7's Brad Bell was that he had bought two firearms.

Such a sale of a handgun would be illegal under Maryland law. In an off-camera conversation Wednesday, Eichelberger admitted to ABC 7's Brad Bell that he sold the shotgun -- a sale which could be legal. He denied doing anything more than showing Thompson and his friends a Glock.

"I figure I buy 'em from police, everything is legit," Thompson said. "I wouldn't think something like this would happen."

Police retrieved both guns from Thompson. According to sources, a trace of the serial number of the Glock shows it was originally registered to a previous police chief and was recovered by police in Morningside in 2004 and should still have been in police custody. Investigators are trying to find out how it got back on the streets.

Sources also say that several guns seized on the streets, including an assault rifle, may be missing from Morningside police storage. The concern is they too may have been sold.

Meanwhile, in the small municipality where every resident knows every cop on the force the news has come as a surprise.

"All I can say is should have known better as far as being an officer...I didn't believe it," said Charles Kent, a resident.

Under Maryland law, a used handgun can only be sold by a licensed dealer or with the assistance of a designated police agency. Would-be buyers must also submit an application to state police and wait seven days for a background check. Not following that law could result in a misdemeanor charge if the gun was legally owned. 

According to sources, charges are pending as state police continue to investigate the possible theft and sale of guns from the police station.

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