Federal judge orders release of Yellow House owners from custody

A federal judge has denied prosecutors’ request to revoke the bond of two Lawrence secondhand store owners, who face charges in three cases.

Magistrate Judge James P. O’Hara’s ruling on Monday allowed the release of Yellow House Store owners Guy and Carrie Neighbors, who spent more than a week in custody.

They were arrested on obstruction charges and accused of concealing a record from police about a computer sold on eBay. The computer had been reported stolen from Kansas University’s School of Journalism.

In another case against the couple, prosecutors accuse them of selling stolen goods on the Internet. They face drug charges in a third case. For nearly three years, the couple have denied allegations and accused prosecutors and police of corruption.

O’Hara on Monday also ruled that prosecutors had presented probable cause in the obstruction case against the Neighborses. But he denied a motion from the U.S. Attorney’s office to have them detained until trial.

In his ruling, O’Hara cited a previous agreement between the two sides that restricts discussion of the case in public. The judge also ordered the defendants to immediately shut down all Internet or electronic sales of goods.

John Duma, a defense attorney for Carrie Neighbors, has proposed the defendants “erect prominent signs” in their store, 1904 Mass., to require customers to show documentation and give assurances that they are not selling stolen property.