I would be tempted to get the police involved. If someone has it then it was clearly stolen. If you call and make a police report (which you would need to do if you wish to claim this on your home insurance), then the police may want to interview the people present when the iPad was stolen. (I don't say missing as it clearly is not at the hosts' house as they have searched and searched.) The police would go to each boys' house and get a statement (Peters house included) and I bet this time Peter won't have the privilege of hiding in his bedroom during that time! I don't see anything accusatory happening here if all the boys were asked by an authority figure besides your family. It may prompt some seriousness into the situation! I know personally, if I had a $500 item stolen I would be calling it as it is: a THEFT.
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