Legal Question in Legal Ethics in Virginia

First, it is a crime to make a false police report.

But you would have to prove that the person KNEW that the report was false.

Also, how did you lose your business? I cannot see how you could lose your business unless the police and a court BELIEVED this. If the court accepted and believed that the threat was true, then it would be very hard to do anything. There would be sufficient evidence (people would say) to show that the person THOUGHT it was true.

To sue for defamation or malicious prosecution, you would have to show NOT JUST that the person was "wrong" but that they KNEW what they said was false.

Also, for defamation you would have only 1 year to sue.