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Are you saying you refused to give him back his laptop?When you told the police the story what did they say about the laptop issue?
I don't know if they will charge you or not. They likely will say it is a civil matter.
But he can sue you for the replacement cost.
It sounds like he might not want to bother given these facts.
He has to sue within two years from the time you took the laptop.
The police are not going to arrest you.