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Money itself has an odor, a distinct smell (cue Monty Python's "Money"). The dog can be trained to alert on merely money, and the human handlers later claim it was the smell of narcotics. They can jack anyone up for carrying detectable amounts of money using narcotics as an excuse.

This perp's troubles started when he lied about how much cash he had. Had he declared it, they'd have to let him go.

He can't be prosecuted for the information he was carrying- if none of it is classified, you can have any information you want. It's included in the article to help justify searching him in the first place.

If I got caught with money, a manual on electroplating, instructions for installing electroplated cyclone fences, and advice on cracking rocks in fence post holes, the article would mention cyanide, information on perimeter security devices used at military bases, and explosives.