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Perhaps the DA didn't prosecute because something was not handled correctly. It sounds like there was a lot of evidence and such to deal with. Was it possible that the ammunition was not returned because ownership couldn't be clearly identified?

Might there have been some confusion with regards to the terminology used by the officer? Perhaps he stated the ammunition couldn't be returned because it was potential evidence in a crime?

All any of us can do is speculate, since we were not there. I find it interesting how many people jumped on the 'bad cop' bandwagon immediately.