This isn’t current news by any stretch. The story was reported in the Boston Globe when it happened in 1997, and can be found on the web at Maine Antique Digest.
It goes like this: the contents of the Morse Museum were auctioned off in the early 90s. Among the spoils were two Egyptian mummies. One of them landed in the hands of a Maine antiques dealer. The Egyptian government learned of the mummy, which was advertised as a ‘princess.’ The Egyptian’s wanted it back, the Mainer said they could fish it out of the Piscatiqua River (or pay $20,000). Eventually, historians were sent to inspect it. They reported that the supposed princess had a mummified penis, and was just an average, everyday mummy.