Former Boss Threatening "theft" Charges Over A Gift. I Have Proof Of Sexual Harassment/grooming. What Is My Liability?

Location: Texas.

I worked as an independent contractor (1099) for a small business owner, "C," for about two years. A few days ago, his new assistant, "A," sent me a "Formal Demand" claiming I stole company property—an iPad.

Almost 2 years ago C took me to a store and bought me an iPad because I told him mine was broken. He told me explicitly it was a gift for me. It’s been logged into my personal iCloud for over a year. He never asked for it back, never mentioned it was company property, and there is no written agreement saying I have to return it.

C fired me on a couple months ago with zero notice after I helped him train my replacement. Now, a month later, they are threatening to file a police report for "theft" if I don't return it in 15 days.

The reason he’s doing this is because I rejected his advances for 2 years. I have texts of him:

Asking to be my "sugar daddy" (multiple times).

Telling me to stop dating "white boys" and stay "available" for a "Hispanic man" like him.

Telling me I’m "getting old" and need to settle down.

He even opened the door in just his underwear when I was dropping off work supplies at his house.

He also paid for my car repairs, repainting, and bought me another personal gift.

The new assistant is threatening to file a theft complaint saying that because I never accepted any personal intent then it was company property and not considered a gift. He asked for the iPad back a month after I got fired. We even had an amicable conversation after he fired me and were on good terms, so I don’t understand why he is coming back a month after to ask for it.

Anyway, since I’m undocumented (and so is he), can he actually file a theft report for a gift?

Should I just block them? Or do I need to get a lawyer involved now?