Don't assume you can wear stolen items just because the tag cleared.

[corthew]

Guards and citizens can still recognize the items if they see it on you in the area it was stolen from. Better to sell it in another town and buy new stuff. You may be able to immediately buy it back and avoid consequences but I don't know how you'd test that. I just had stuff confiscated and paid fine two days after the red hand cleared from stolen property.