"I got a home for the other 400, but I wanted to see how much you're comfortable with taking."

That's a conversation, recorded by police between Frederick Wayne Dagit -- owner of a Williamstown Township smoking club -- and a confidential informant, provided by the DEA.

Undercover narcotics officer's testified in Dagit's preliminary examination Thursday that the deal was, on May 26th of this year, the informant would provide the drugs.

"The marijuana was packaged and placed in duffel bags," one Michigan State Police Detective Sergeant said.

Dagit, police said, agreed to buy 50 pounds of it for use in his club, then store 154 pounds in his home.

"[When the deal was done, the informant,] provided me with $10,000 in US currency," the sergeant said.

Later that day, search warrants were issued for Dagit's home and his business -- Green Leaf University-- and he was arrested.

The defense argues their client was trapped by police. They say when an undercover cop was turned away by Dagit for trying to sell him drugs, before this operation began, they then went a step further and tried to sell it to him.

"This is a situation where police surveyed his business took several license plates and didn't arrest anyone," Dagit's attorney James White said. "This is a classic case of entrapment."

Assistant Prosecuting Attorney Bill Crino told Judge Allen that Dagit and the informant had six other prior drug deals before the police got involved. The informant said he was paid nearly $40,000 in total.

"[The last deal was the biggest] because we talked about how he was going to be needing some more," The informant said on the stand.

After several hours of testimony, Judge Allen decided there was enough evidence and bound this case over for trial on all five counts.