<< And the officer said that if I try to say that he didn't have permission, it'd be stealing, and that I could not change the report without being arrested for making a false report in the first place. >>
All too many police officers are like that. They feel that making changes after they took the initial statement makes them look bad. Most officers HATE any and all paper work as it is -- and, paperwork is a HUGE part of their jobs.
You need a lawyer, right now! I'm not a lawyer. But you need to get your (true and complete) version of what happened into the official record ASAP, the sooner, the better. The officer above is just blowing smoke at you because he doesn't want to go back and change the original report. You need to get that report amended right away.
One last thing. I'm a PI. I work almost exclusively for lawyers. I can't tell you how many times I've had to track down and take a signed statement from a witness to an auto accident that happened four, five, six years ago, pursuant to a civil case. They can take that long to drag through the system. Cover your ass as best you can RIGHT NOW!!
Remember, while you are innocent until proven guilty, in a civil case (read: MONEY), your guilt need only be established by a preponderance of the evidence, unlike in a criminal case, where your guilt must be proven beyond the shadow of a reasonable doubt. And we all know how juries are with other people's money . . .
Finally, it would be a key time right now for a lawyer to get his PI to take singed statement RIGHT NOW from the two guys who were the other witnesses at the scene. Incredibly, when a PI shows up on their doostep, most people don't know they don't have to say squat, they are more or less intimidated by the semi-officialness of it all, and a good PI can easily get them to cooperate (although there are also a lot of really crappy PI's out there -- it' not a glamour field).
Your best chance of getting these two witnesses to tell the truth is right now, before the relatives of the guy who bought/is buying the farm do the almost inevitable and hire counsel and orchestrate their own version.
Good luck. You need it. :frown: