Albert Omar Peyton made a deal with Police and agreed to do a "controlled delivery'' after two bags of cocaine were found in his luggage, a Supreme Court jury heard yesterday.

Peyton, 22, of Brooklyn, New York, is charged with importing cocaine worth $240,000 into Bermuda on May 22, 1996 and possessing the drug with intent to supply.

Last December, a Supreme Court jury was unable to reach a verdict after the four-man, eight-woman jury deliberated for four-and-a-half hours.

Chief Justice Austin Ward then ordered a retrial which started on Wednesday.

In a statement to Police recorded on May 23, 1996, Peyton told Police detectives that he had been given $1,000 in the United States and told to drop off some baby products to a person in Bermuda.

But a Customs officer found two bags of cocaine hidden inside two bottles of Johnson's baby powder when he searched Peyton's duffel bag and he was promptly arrested.

Customs officer O'Brien Roberts testified that he was on duty the evening Peyton disembarked from American Airlines flight 1444 some time around 8.25 p.m. on May 22, 1996.

After clearing Immigration, Roberts said he watched Peyton go over to a conveyor belt and picked up a black duffel bag.

"He approached my position with the duffel bag and he was carrying a red and blue knapsack.

Roberts said he then escorted Peyton to a Customs inspection bench and asked him if he had any gifts.

And Peyton told him that he had some baby products for a friend. After a search of his knapsack, Roberts said Police Sgt. Andrew Boyce joined him.

Inspection of the duffel bag revealed clothing and several larger items of baby products, including packages of pampers, baby wipes, baby oil, and two plastic containers of baby powder.

Roberts testified that his attention was drawn to the containers of baby powder because they were the two items he could not easily examine by sight or by touch.

A more thorough examination of the containers he said, turned up a plastic bag hidden under about an inch of what appeared to be baby powder.

Roberts said that he was able to shift the powder with a metal probe and saw the top of what appeared to be a plastic bag.

When the contents of the two plastic bags were analysed, the cream coloured powder was found to be 980.3 grams of 63 per cent pure cocaine.

In his statement Peyton said that he agreed to cooperate with Police and made several attempts to deliver the drugs to his Bermudian contact at the Sandpiper Guest House without success.

The case continues this morning before Mr. Justice Ward. Charlene Scott appears for the crown. Lawyers Elizabeth Christopher and Renee Foggo appear for the accused.