No it was never used as a police issue firearm. It is just one of a slew of inexpensive firearms imported in the 60's and 70's to cut into Ruger"s and Colt's sales. Because the German Mark was so much under valued at the time these guns could be sold much cheaper than their American counterparts. The quality doesn't measure up to Ruger or Colt either. There where three major German makers for these guns, Sauer and Son, Herbert Schmidt, and Rohm. My money would be on Herbert Schmidt of Ostheim ,
West Germany. Regardless of which firm manufactured it value is minimal, 125 to 150 if like new in the box down to 25 to 45 if in poor condition.