As far as I can tell everything that is equipped on PC when they drop it disappears for some reason. At least whenever someone I knew dropped the stuff they had equipped were gone. I used to think the stuff drop to the floor but they don't seem to. I think its because the PC is deleted and replaced with NPC, but the items get deleted with it. But Admins should be able to confirm.
I have found that when an arrested character drops, the stun cuffs also seem to disappear too. I also thought that the characters items/armor/ weapons(if any) would be dropped too, along with the cuffs, for future reference can it be clarified if these things are dropped, or disappear!
Makes me wish I'd executed the fiend immediately, that way I'd still have my stun cuffs and wouldn't have to ask questions regarding this matter.... or wait for clarification on what is supposed to happen.