Security consultant Adrian Gard has pleaded not guilty to making a false representation resulting in a police investigation.

An All Blacks security guard accused of making up claims about finding a bugging device at the team's Sydney hotel has lost a bid to have the case against him thrown out of court.

Downing Centre Local Court magistrate Jennifer Atkinson rejected a submission on Thursday from Adrian Gard's defence barrister that he had no case to answer on the charge of making a false representation resulting in a police investigation over the bug.

Barrister Anthony Kimmins claimed the prosecution case against Gard was circumstantial and it could not be proved he had made up the story about finding the listening device secreted in a chair in the All Blacks' meeting room at the InterContinental Hotel in Double Bay in August last year.

SUPPLIED There was not enough evidence in the circumstantial case to convict Adrian Gard of making a false representation resulting in a police investigation.

Kimmins said the fact police were suspicious about Gard's story did not mean he was guilty.

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But prosecutor Stephen Dayeian told the court that "the device was never in the chair" and Gard had indeed made it all up.

GETTY IMAGES Coach Steve Hansen and manager Darren Shand have taken the All Blacks back to the Sydney hotel at the centre of last year's bugging device allegation.

Detective Sergeant Paul Mangan, officer in charge of the investigation, had earlier told the court Gard was initially treated as a witness but the detective was "suspicious of some of the circumstances".

Questioned by Kimmins, Mangan agreed he was scathing of All Blacks team manager Darren Shand when interviewing him for the first time five days after the bug was found.

Mangan said police were concerned about what had happened to the two chairs which Gard claimed had given abnormal readings during a bug sweep of the team's meeting room in the hotel on August 15 last year.

Shand had previously told the court he saw one of the chairs in Gard's room had been cut open and there was what looked like a listening device inside.

Mangan said the chairs in question had later been left unattended in the hotel for five days before police were called in.

The All Blacks had wanted the investigation into the bug handled internally to avoid the media getting involved.

Mangan said when it came time to charging Gard, one of the police's main concerns about the case was the continuity of evidence involving the chairs.

The maximum penalty for making a false representation resulting in a police investigation is 12 months' jail and a A$5500 fine.

The hearing resumes on Friday.