I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.
It's unlikely that you would be arrested unless they can find some evidence that you knew your friend was going to use the car to do a drug run. The fact that you reported it stolen tends to suggest otherwise - it wouldn't make any sense to loan someone your car to sell drugs and then report it stolen. So that works to your benefit. If police do call to talk to you about what happened, you should know that (a) you have no obligation whatsoever to talk to them and (b) you have a right to have a lawyer go with you if you decide to talk to them. Anything you say to police can be used against you if they decide to press charges.
Also, if they charge you with a crime, you may be able to get the charges dropped if you are willing to testify against your friend (if you have any information that might help them get a conviction). If you can't afford a lawyer, the judge will appoint one for you at no charge, and a lawyer can try to work out that type of deal on your behalf.
The bigger issue is that your car is now evidence of a crime, and police may not be willing to release it to you until your friend's case is over. They can try to confiscate it permanently if they have reason to believe you knew about the drug transaction - and the standard of proof for a civil forfeiture is lower than for a criminal conviction. If that happens, you may want to consult with an attorney located in Allentown who can help you try to get the car back.
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