There is nothing in the rules that state you MUST let them get their items. Is it a dick move? Probably but you do not HAVE to give them the items. This has been confirmed by Danda, and I do believe even Kainzo has stated in the past you do not have to let them get their items.
As far as I know Miabo has not asked for his items back - to be honest I have no idea what he even has - I doubt he has LWCs but he might. It is a dick move to keep someone's stuff unless they screw the town over or don't ask for it back. I will take custody of his belongings tomorrow evening and if he asks for them back I will see that he gets them - other than that not much to talk about really - just more drama.