all lewd conduct (including the loitering portion) require that the defendant must "know or should know of the presence of persons who are likely to be offended by his conduct." (CALJIC 16.400, element 3) Clearly, if the decoy is pretending to be sexually interested in the defendant (and they all do this type of play acting) then the defendant's belief that the person who is observing him is not likely to be offended is a reasonable one and no crime has been committed.
It is likely you will be sued.