Leatherman said he waited with other officers on the National Pike the morning of May 1 while a Secret Service informant drove to Petry's house in a wooded area. The informant came back with poor-quality counterfeit $100 bills he said he got from Petry, Leatherman said.
Leatherman said officers couldn't observe the informant or the house from the road, because of heavy brush and trees.
Leatherman said the informant told officers that Petry was trying to perfect the bills, which he was producing on his own computer and printer, so they could be passed. He said the informant claimed Petry was going to try to find a buyer who would give him 50 cents on the dollar for the bills.
Agents armed with search and seizure warrants stopped Petry's van as he left his home on May 14 and found six $100 bills in Petry's wallet, Leatherman said. They confiscated his van, computer and printer, he said.
Leatherman said that Petry, after his arrest, told officers he hadn't passed any of the bills, and had in fact burned most of them in his stove because they were of low quality.
In addition to local charges, Petry is charged by the Secret Service with manufacturing counterfeit U.S. currency, possession of explosives and possession of firearms, authorities said.
In a statement after Petry's arrest on federal charges, agents said Petry had made about 50,000 worth of $100 bills, but passed none of them to their knowledge.
Authorities have not said what explosives or firearms they found in their search of Petry's home.
Defense attorney Gordon Lynn said after the hearing that Petry will plead innocent to all charges. He said he plans to show that the informant set up Petry, and that Petry "had no intention whatsoever to pass these bills."
"It's only based on the word of the confidential information that he intended to sell (the bills)," Lynn said.