I don't think they were either. From what I read, it sounds like they couldn't prove that 5 Star got the titles from JM, so Jeff's charges were dropped. 5 Star still sold the titles though.
This is what I heard too...Lou Sirkin did some clever legal-eagling, and thus they cannot confirm that JM supplied Five Star with the titles ('cos Jeff is certainly not going to confirm it ).
As such, I don't think the dropping of the charges constitutes a sea change in the approach of the authorities, just a realisation that there's no way for them to bring it to trial with a realistic possibility of winning.