A Yarmouth detective accompanied by a Harvard police sergeant, entered a class building at the Business School Tuesday and arrested two students on larceny charges.

Terry Horsman was charged with two counts of larceny and Ira Neaman with one count of larceny by check.

Sergeant Tuttle, the Yarmouth police detective who made the arrest, said the larceny charges result from bad checks the students allegedly issued to the town of Yarmouth and to a merchant there during the summer.

The two students are out on personal recognizance, pending a hearing on October 22 at the first district court of Barnstable County, where they were booked. However, neither Horsman nor Neaman could be reached for comment.

The charges against both students involve larson exceeding $100.

The two students operated the Mill Creek Artisan's Revival in Yarvouth--a fair of craftsmen who sold hand-made items to the local community--this summer.

William L. Backman, of the University police said yesterday that Tuttle came to the Harvard police headquarters and asked for assistance in making the arrest. The police contacted the registrar's office, which officially identified the students, Backman said.

Harvard Police Sergeant John Francis entered the class in Aldrich Hall which the two students were attending and asked to see them outside.