Dear Charles,
You have not cooperated in the action, but you have given bad example (by showing humor at wrongdoing) or scandal (encouraging someone in his or her wrongdoing) by laughing. Since it was accidental or nervous laughter, it was a venial sin, if a sin at all.
I am glad that you have a tender enough conscience to be bothered by this. We could all take a lesson from you! You are not bound to make restitution to the party stolen from, but you can make up for the wrong you did the person, who admitted the participation in theft. You would do this by apologizing, and encouraging the person to donate that article to charity.
As for an obligation to report anything, that would be difficult. There may be no reported theft, and the victim may be unknown. Moreover, you don't know who the seller was, or who the thief was, and I doubt that your friend can or would tell you. If it were:
- a large quantity of goods
- something done often, or
- something very valuable
then you could speak to an detective about it and get advice. It could be very dangerous to report such a thing. If it was a one-time thing, like buying a computer, one thinks was stolen and scrubbed, then, no, it would be fruitless, as the insurance has been collected, and the seller was most likely way down the chain of fences. Your friend might be encouraged to repent or give it away.
Finally, it may not even be true that your friend profited in the theft. He may have just a suspicion and voiced it, and he may have just not minded, if that is the case. Too many of us are willing to turn a blind eye to a very good deal!
In the end, only you know the details, but I hope this helps.
Mary Ann
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