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At this point it is pretty safe to assume that you are not going to be prosecuted for theft.. The instructor was being honest when they said they just wanted the item back. Once they got it, the issue is resolved.
If you were going to be charged, the police would have either issued you a citation right there, or the instructor would have gone down to court, filed a complaint, and you would have received a summons by now.
So I find it incredibly unlikely that anything more will come of this since everyone has been put back in the same position they were in before this came about...
I don't think you have anything to worry about here..
That is correct it is up to the prosecutor to determine whether or not to file a formal criminal charge. The victim just files a criminal complaint and then the prosecutor decides whether to issue a formal charge. But it is very unlikely that after 2 months you wouldn't have heard something by now. As it would have taken a week or ten days to issue the summons if the prosecutor had decided to file a criminal charge after a criminal complaint has been filed by the instructor.
So again I don't think that you have anything to worry about at this point.