First I would commend your stepfather for turning it over to LE and letting them handle it. Don't know that I would have had the self-control to do that. I think your FIL needs to understand that he is in danger now and take steps he thinks are appropriate. Some good ones have been mentioned here. If the neighbor is a felon, as was mentioned, he should do jail time. People need to be reminded that their pets are their responsibility and they are responsible for keeping them on their own property. You have no control over what happens to your pet if it leaves your property. I would consider the cats an "attractive nuisance" and release the dogs from all responsibility.