Again, tough spot. And you're barely over (maybe!) the neighbor witch down the street. Your kids are just having a tough time right now, aren't they? And mom is too!

Kids make mistakes. Some don't know how to responsibly 'get out of/survive' a bad situation. She doesn't understand the implications of being thought of as a thief...that could be on your mind about her for years. But she probably can't think that long away.

Your daughter sounds level headed with the ability to say what she needs to. Could she try talking to the friend again? Maybe with a different script? More exacting of the evidence, saying my wallet went missing and I know you had it. Why didn't you give it to me? You knew it was missing.

Something like that might give the friend an easy way out. They still have to coexist. She's a kid who made a bad choice. I imagine she's scared to death someone will find out about what she did. I'm not excusing what she did or how she's behaving now...just me sizing up the situation as I understand it.

Of course, can't make anything happen - the old horse to water bit.