Glad the watches came home... But my BS meter is going off big time. I suspect the boss (and I know he is a friend of OP) had a hand in this. I have employees and can tell you if one of my people did that, I'd handle it internally and get them back if I can but would NEVER share a story about a drug dealer and debt etc... The only reason for such a story is to shine the spotlight on a scapegoat to avoid anyone looking at me.
I am not saying that's the case here but just smells funny. In any case all property is back where it belongs and all is good in the end! I would recommend that your friend consider changing the locks - just ask the landlord.
Best!
:cheers: