Sounds like I am only getting half a story here. Did the police find the stolen bike in the suspects home or in his possession? Doesn't sound like it.
Actually, it was in his posession, but he was seen at his house with the bike. They couldn't arrest him because he could feasably say that he got the bike 4 months ago from a friend.
So what friend would give somebody a 400 dollar full suspension mountian bike for free?