Federal judge rules Yellow House co-owner not mentally competent to help in his defense

A federal judge has ruled that Guy Neighbors, an owner of the Yellow House Store in Lawrence, isn’t mentally competent to assist in his defense in three court cases.

U.S. District Judge Carlos Murguia made the ruling Tuesday and placed Neighbors in custody of the U.S. attorney general’s office, where he shall be hospitalized at a suitable facility for treatment, according to an order filed Wednesday.

Neighbors had undergone a recent psychological examination, and Murguia made a finding that Neighbors was “unable to understand the nature and consequences of the proceedings against him,” which would impair his ability to assist in his defense. Murguia also ordered that the psychologist’s report remain sealed.

On Monday, Murguia ruled that Neighbors’ wife, Carrie Neighbors, a co-defendant in the three cases, was competent to stand trial. But her case will not proceed unless Guy Neighbors is declared competent.

In the main case, prosecutors accuse the Neighbors of selling stolen goods from their secondhand store, 1904 Mass., which remains open. They face 19 charges of wire fraud, conspiracy and money laundering in the 2007 case.

In two other pending cases, prosecutors accuse them of manufacturing marijuana and obstructing a theft investigation.

The couple has maintained their innocence. Until last year they frequently used Internet blogs to criticize federal prosecutors and Lawrence police officers. Prosecutors have repeatedly said many of the defendants’ allegations are false and meant to intimidate witnesses.

Guy Neighbors has been in custody since May, when a federal magistrate judge ruled he broke an agreement not to discuss the case publicly. The judge said Neighbors posed a threat of “continued criminal defamation of government counsel and witnesses” based on an e-mail he sent. Carrie Neighbors remains free on bond.

Mental health experts now have four months to determine whether Neighbors is likely benefit enough from treatment to be declared competent to stand trial.

Suzanne Valdez, a clinical associate professor at Kansas University’s School of Law, said it’s not uncommon but also not frequent for a judge to declare defendants incompetent.

Valdez also said there is a process in place to put the case back on track when the defendant benefits from treatment.