Legal Question in Civil Litigation in Michigan

stolen music equipment

8 months ago I loaned over $1000 of music equipment to an old band member and friend for $150 as collateral in Genessee county, MI. There was no set date for payback. I only heard from the person two times the two following months after, but in the past 6 months I have attempted contact at least twice a day for 2-3 weeks of every month. 1 month ago he contacted me after I posted a public bulletin looking to locate the missing property, no slander towards the person. He claims I broke our deal and stated I told him I'd pay in 1 month after the trade and that I owe $1000 to recover my property and threatened legal action for ''defamation of character''. He has since remained unreachable. I recently just found my property for sale on a public classified list and want to take action. What ways can I go about this? Report equipment as stolen and file civil suit? And if so how to go about it? Or am I entitled to do anything about this? I have full proof of ownership of said equipment and phone records dictating my many attempts to keep the deal fair. The equipment is very important to me and holds a lot of sentimental value. Thank you for your advice.

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