Noose Found in Home of Susan Powell's Father-in-Law

There's been another stunning development in the case of missing Utah mom Susan Powell: a noose has been found in the home of her father-in-law Steve Powell, who was recently arrested on charges of voyeurism and child pornography. INSIDE EDITION re

A hangman's noose found inside the home of missing mom Susan Powell's creepy father-in-law is making headlines. ABC News was allowed inside the house and shot disturbing video of the noose.

Susan's husband, Josh Powell, who lived in the house with his two sons and his father, Steve, says the noose is an art display. Steve was recently arrested as a peeping tom and for possessing child pornography. The assistant attorney general for the state of Washington says Josh may have been involved. He also says Josh is a person of interest in Susan's disappearance:

"Mr. Josh Powell has indicated to the CPS investigator that he does take pictures of people's legs in public without their knowledge. Other parts of this investigation certainly lead you to believe, and leads the State to believe, that he is responsible for her disappearance."
 
But Josh denied any wrongdoing.

"I do not take photos of people; I certainly do not take any photos of any person's body parts. I love my wife, I know my wife loves my children. I want my wife back," Josh said.

The prosecutor painted a picture of dysfunction in the Powell household. Josh's brother also lives in the house.

"Law enforcement has reported that the adult brother is schizophrenic, that he's answered the door to law enforcement in the nude," said the assistant attorney general.

Josh, acting as his own attorney, insisted he's a good dad to his two young sons.

"I have not harmed them, I have not subjected them to any environment or person that I believe to be even a potential threat to them," Josh said.

But the boys were taken away, and custody was awarded—at least temporarily—to Susan's parents, Judy and Chuck Cox.

Josh maintains that on the night Susan disappeared he was camping with his kids in a blizzard. Now that the boys are out of his custody, investigators hope they'll share information about what happened to their mother. Josh's sister Jennifer says the boys, ages four and six, may know something.

"I think my brother did something, so we'll let the police do the investigation and figure that out," she said.

Josh Powell has not been charged in his wife's disappearance. He is currently granted three hours of visitation with his sons on Sundayss. The court is expected to look at the custody arrangement again in November.