Accused Russian arms dealer Viktor Bout on Monday relived in court his dramatic downfall in a US sting operation, as his lawyer claimed a key prosecution witness was motivated by big money.

Bout listened intently in New York federal court as prosecutors played back secret recordings made at the climactic encounter in a three-month operation to trap the so-called "Lord of War" and "Merchant of Death."

During that 2008 meeting in Bangkok, the mustachioed Bout told men claiming to represent the Colombian narco-guerrilla organization FARC that he could procure them a huge arsenal of weapons, including missiles to shoot down American helicopters.

In fact, the men were undercover US agents and to Bout's surprise the door of the hotel conference room burst open just after he had shaken hands on the alleged deal with a supposed FARC member named only Carlos.

At that moment, the transcript of the recording reads like a script from an action movie:

"Hands up," an unidentified male says.

"You are under arrest," a voice says.

"Everybody hands up! Hands up!"

US prosecutors believe the three-month operation stretching from Latin America to Europe and Asia showed that Bout conspired to arm FARC, a US-designated terrorism group, with weapons that would then be turned against US servicemen.

Bout, a legendary player in the murky world of arms shipments to Africa's many wars, has pleaded not guilty. His lawyers say he was out of the cargo business by then and that any promises he made to selling weapons to the pretend FARC members were a ploy in aid of his real goal, which was to sell off the last two cargo planes in his possession.

The Russian's defense team got a chance to fire back Tuesday, when attorney Albert Dayan cross-examined Carlos, named in court as Carlos Sagastume.

Sagastume is a one-time Guatemalan military member who turned to drug trafficking, then to undercover work for US agencies. He revealed he had taken part in 150 US operations and been paid lavishly, including $7 million for a single previous case.

So far, for his work with Bout, he had received $250,000 from the Drug Enforcement Administration (DEA), he said. Dayan suggested he was in for much more if Bout was found guilty.

"You have a financial stake in the outcome," Dayan said.

"I hope they will pay, but whether they pay, I do not know," Sagastume said.

The trial began almost two weeks ago and arguments are expected to wrap up at the start of next week.

Bout, the subject of a book "Merchant of Death" and reputedly the inspiration for a Hollywood movie called "Lord of War," faces life in prison if found guilty.

A rising young star in the Soviet military just before the Soviet collapse in 1991, Bout put his contacts and skills to use in assembling a private fleet of huge cargo planes.

He quickly gained a reputation as the principal black market suppliers of weaponry around the world, although his lawyers insist that he simply acted as transporter, not dealer.

The sting operation in Thailand infuriated Moscow, but after a bitter diplomatic battle between Washington and Moscow Bout was extradited to New York last year.

Prosecutors have sought to underline that Bout not only was ready to sell weapons to FARC, but was keen for them to be used against Americans -- a key element of the charges against him.

In the Bangkok hotel he repeatedly exclaimed hatred for Americans, saying: "It's not, uh, business -- it's my fight."

However, his lawyers say the anti-American talk was a bluff to ingratiate himself with what he believed were people eager to buy his planes.

In a measure of how far Bout has fallen, he arrived from the detention center in court Monday wearing a suit, but no neck tie. The detention center "lost it," a lawyer explained.

An acquaintance of Bout in the public later took off his own yellow tie and loaned it to the Russian, adding: "It's Hermes."