A former police inspector sold forged 1930s US$100 notes to an American Secret Service agent, it was claimed in court yesterday. Dicky Lau Yuk-wan, 46, was hunted down by the Commercial Crime Bureau after an informant who worked for the US Secret Service lured him into a trap, the District Court was told. The informant, Hans Schade, introduced Lau to agent Alan Zygowicz who posed as a potential buyer for the fake banknotes, government counsel Stanley Chan Kwong-chi claimed. Lau pleaded not guilty to a charge of delivering counterfeit notes and another of possession of a false instrument on September 24, 1995. Mr Schade testified yesterday that Lau had told him the notes were part of a genuine Kuomintang haul from the civil war. Mr Schade said Lau sold him 50 notes in February 1995, which he found to be counterfeit. Mr Chan alleged the defendant had told Mr Schade if he could find a buyer for more counterfeit money, he could get a good deal. The court heard Mr Schade later contacted the US Secret Service in Los Angeles. A meeting was set up in September 1995 between Mr Schade, the defendant and Mr Zygowicz. The trio met in a room in the Wharney Hotel, Wan Chai. Lau and the agent negotiated a deal while police waited in a next-door room, the court heard. A total of 435 $100 notes were seized in the room and Lau was arrested. The trial continues today before Judge Wayne Wilson.