Question - scene at the stock yard - SPOILER

When Steve went to his old mob pals to get $200 it did seem like a sincere but terrible mistake on his part to risk losing his parole.

But there he was at the stock yard to do the deed when Flavia showed up unexpectedly. He had the convo with his cohorts about losing the $200 by walking out on them to take Flavia away.

As he and Flavia left, we saw his police nemisis emerge from the shadows between rail cars and go toward the guys to arrest them. He and his men were lurking and listening, so would have heard Steve refusing to go on with the crime. And later, in spite of Steve not keeping his nose clean, after the cop threatened him early on to do so, Steve still walked away from an almost-crime.

Did anybody think that Steve had tipped the cop as a favor to prove he was going straight, so the guys would be arrested? And that's why the cop never followed up by arresting him later?

Though at the time he approached his old crime partner for the $200, it did seem he was making that sacrifice of risk for Flavia and the family.

Very confusing as to why Steve was allowed to walk away after consorting with criminals again.