Sergio Villalobos, 45, was arrested in January and charged with unlawful taking of a motor vehicle, a fourth-degree felony, and intimidation of a witness, a third-degree felony.
Police said he stole a 2002 GMC Yukon from Everado Jabalera Holguin in late December, according to court documents.
Holguin told police that Villalobos was upset because Holguin owed Villalobos $2,500.
Holguin said he couldn't pay the debt so Villalobos stole his vehicle and said if Holguin reported the theft to police Villalobos would kill him, according to court documents.
During an interview with police, Villalobos allegedly handed over the keys to the Yukon. The vehicle was found near County Road 5490 and it was returned to Holguin.
Villalobos has never been convicted of a crime in San Juan County.
Deputy District Attorney Ron Brambl said while Villalobos was in custody the U.S. Immigration Customs Enforcement agency placed an immigration hold on Villalobos.
Brambl said Holguin was OK with the state dismissing criminal charges in favor of deportation.