Oakland County Detective Jeff Buchmann told 48th District Judge Michael Martinez that 15-year-old Semaj Moran gave police statements indicating he shot Loretta Culpepper Fournier, 52, and Luann Robinson, 58, on instruction from co-defendant Arnold Howard, 22, also of Pontiac.
The detective said Moran and Howard believed Fournier had given the teen the phony money and returned to confront her.
"It's really tragic a counterfeit bill used to buy marijuana directly or indirectly led to the killing of two people — that is a shame, it's unconscionable," Martinez said as he bound both over to Oakland Circuit Court to stand trial.
Moran has been charged as an adult. He and Howard both are charged with two counts of first-degree premeditated murder and felony murder and four counts of use of a firearm in the commission of a felony.
The women were found in the home about 8:30 p.m. Feb. 17.
According to investigators, the two men were allowed inside a first-floor flat on Pingree Street earlier that day by Fournier, whom they called "Mama Lo."
After she gave him a "real" $10 bill, Moran said he shot Fournier on Howard's orders when Howard gave him a signal by flushing a toilet, Buchmann testified.
Moran told detectives Howard then broke into an upstairs flat and shoved Robinson down the stairs. Moran then shot her in the head, according to testimony.
Buchmann read a statement in which Moran admitted going to the address over the fake bill, smoking marijuana with Fournier and shooting both women on Howard's instructions.
In his statement to police, Howard said Moran shot Fournier while Howard was in the bathroom. Howard claimed Moran shoved Robinson down the stairs and killed her because she saw him and he didn't want to leave witnesses, Buchmann testified.
According to police, Howard changed his story when his baseball cap was found in the upstairs flat and his fingerprints on a TV and VCR.
Howard's criminal history includes receiving and concealing stolen property, drug charges and fleeing and eluding police.
Deputies said Moran was in Children's Village twice, at age 13 and 14, for larceny charges.
The two victims were originally from Port Huron and had been friends for more than 30 years. Relatives and friends said they were partners in an aquatic physical therapy business.