Wait I thought he was doing it because he didn't want the people to call him anymore because he was trying to stay out of trouble. Did I read it wrong?

If I did read it right, maybe he's too stupid to realize you pinched his bag. I do think its something that you shouldn't do. Just tell him flat out your reasoning for not wanted to sell and if he cant accept that than hes not a good friend and you can tell him to fuck off for not respecting the fact that you're trying to get your life on the right track.