Legal Question in Criminal Law in Michigan

On Thursday 4/7/11 I was leaving work to discover my car was broken into. they shattered my back drivers-side window and stole my backpack, which had my medical marijuana in it ( I am a legal patient). The person obviously knew what they were looking for. I dialed 911 and had a police officer come down and i filed a report. I told the officer what all of value was in my bag and I told him the exact amount of marijuana that was in the bag and how much value it had. The next day 4/8/11 I went into work to view our surveillance tapes...I dont keep bad company around by any means, so i could only think of 2 suspects that would do this to me. My car was in a blind spot on the videos, but i stopped the tape and noticed whos car it was, sure enough my instinct was right. even though the tape has no real evidence that could be used in court, I still knew who it was. I contacted this person and told them what happened and I scared him into confessing by making him believe I had three different camera angles taping the whole thing. I then told him to give me back my bag with everything that i had in it along with the $150.00 its costing me to get my car fixed and i wouldn't call the police and send him back to prison (he apparently just got off tether and is currently on parole). I got my bag back, but when i got home I checked inside it to find all my medical marijuana, but I had a book and inside that book are my medical papers that have personal information on it which scares me. Even though this person has no respect or consideration for me I am still having trouble deciding on whether or not to call the police. I am holding this persons life in my hands and I feel like it would be an easy decision for most people, but I am kinda scared that someone might retaliate or something, these kids are really sketchy and I am scared of them. I also don't know if its illegal for me to not tell the police about it after filing a police report. I called the person back and told him i wasn't satisfied because alot of personal belongings like clothes, books , and my medical records were not returned with everything else and I haven't received any cash yet either. I told him I was gonna give him a week to come up with $200 or I'm gonna turn him over to the police. He agreed to do so, but then why am i trusting the same guy who broke into my car. Am I going about this the right way or can I get into trouble handling it this way. I need to figure this all out ASAP so I can start handling everything legally by the books. Please give me your advice.

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