I couldn't find any mention of this other than the artist's site, but the judge and attorney mentioned seem to be real people:
Brooklyn-based designer Takeshi Miyakawa was arrested on Saturday, May 19, 2012 at 2am for “planting false bombs” – he was installing a new series light sculptures inspired by the I LOVE NY plastic shopping bags around the city in trees and on lamp posts as part of NY Design Week 2012.Via.
A passerby called in a bomb threat after noticing the sculpture installation. The NYPD arrested Miyakawa while a bomb squad verified that the sculptures were non-threatening. The designer and four of his colleagues co-operated with the police, repeatedly explaining that the hanging bags were an art-installation, and not explosives.
At an arraignment on Sunday, May 20, 2012 the prosecution recommended that the judge fix bail, while his lawyer, Deborah J Blum, characterized Miyakawa’s arrest as a gross misunderstanding as evidenced by his many accomplishments in the field of design.
The Honorable Martin Murphy decided to hold Miyakawa for a mental evaluation, extending his detainment for an additional 30 days.