Generally speaking, the DA, or whoever is the prosecuting agency in the case, has the decision on whom to charge with a criminal offense. Many factors are at play, culpability, cooperation, etc.
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Yes. The DA can prosecute or dismiss whatever cases he chooses.
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The district attorney can and often does dismiss charges against an individual even when the evidence is strongly against them for various reasons including unavailabilty of their witnesses on trial date or sometimes in the interest of justice (first time offender). Usually circumstances like your example where someone may have had some involvement or knowledge of a crime may or may not warrant the actual filing of charges. If you are a loved one may be in the situation described in your questions, contact an experienced criminal defense lawyer in your area.