SALEM - A Salem District Court judge yesterday reduced the charges against two people accused of placing mutilated raccoon parts in the doorways of two Salem shops last spring, a ruling a prosecutor said may be appealed.

Sharon Graham and Frederick Purtz had been charged with malicious destruction of property and littering in the incidents, which brought to light tensions within the community of witches and psychics who have established a presence in Salem over the past several decades. Graham also was charged with witness intimidation.

During a hearing yesterday, Graham's lawyer, David Gavegnano, convinced Judge Richard Mori that police had overcharged the two because a charge of malicious destruction requires that property be damaged or destroyed. The buildings were not damaged when the raccoon entrails, body and head were left there, Gavegnano argued; the blood and animal parts were simply cleaned up.

The judge agreed and, over the objections of prosecutor Jane Prince, reduced the charge to injuring or defacing property.

Prince argued that the case was far more serious than defacing property, given that a Fire Department crew had to come in and clean the fronts of the two businesses due to concern over potential biohazards.

"This is not a case where you get some Fantastik and wipe it down," said the prosecutor, who told the judge that the district attorney's office may appeal his ruling.

The reduced charge carries a maximum penalty of 60 days in jail, as opposed to 21/2 years for the more serious charge of malicious destruction.

Graham, 46, and Purtz, 22, both of 98 Bridge St., were charged in August, after a third man, Richard Watson, went to police at the urging of local witch Christian Day.

Watson, Graham's former roommate, told police that Graham wanted to frame Day, a well-known entrepreneur with whom Graham had once briefly worked as a psychic before the two had a falling-out. Day and the owners of the two businesses where the raccoon parts were left had disagreed over a plan by the city to license psychics.

Watson told police he returned home one night to find Graham and a group of young men, including Purtz and Michael Migliozzi, in the apartment, gathered around a jar with an eye in it - the eye of a dead raccoon they had found and dismembered.

Watson said the group then got into Migliozzi's Jeep with the dismembered critter and drove downtown. Graham allegedly directed Purtz to put raccoon pieces on the doorstep of Angelica of the Angels on Central Street, then took more parts around the corner herself to the Goddess Treasure Chest.

Gavegnano said he believes he can prove that Graham did not commit any of the acts alleged by Watson, whom he believes became a pawn of Day.

Watson, 42, attended yesterday's hearing accompanied by his parents.

Mori yesterday allowed the lawyer's request for money to hire an investigator.

Meanwhile, Purtz's lawyer, Sean Wynne, who had joined in Gavegnano's motion, told the judge that his client wanted to plead guilty yesterday to the reduced charge.

The prosecutor objected, citing the possibility of an appeal and a reinstatement of the original malicious destruction charges. The judge said he would not accept a plea from Purtz until prosecutors decide whether to appeal.

Graham and Purtz are due back in court on Dec. 4.