[Graybeard58]

Look at the people here. You want to report a crime but half the crowd is ready to accuse your BIL as their prime suspect. Chances are the police will be even less forgiving then the potential jury.

You are right. If it were my computer I would be tempted to destroy the hard drive, bury it, get a new comp and make sure I had a secure connection with it.

Cheaper than hiring a lawyer to defend yourself against something you didn't do.

[Hardastarboard]

If the pictures have been uploaded any where and distributed, that can create even more legal problems. These images leave "footprints" on the IP servers from the IP providers. If the images were downloaded from or uploaded to anyone that is under surveillance, then it will lead to your family. If the images are downloaded from or uploaded to someone that gets arrested, it will point to your family.

If it were my computer I would be tempted to destroy the hard drive, bury it, get a new comp and make sure I had a secure connection with it.

That last one is a tempting alternative, too, although probably not what I would do based on the comment above it, BUT if you were to destroy the HD, do it right. Break it open and burn it with a torch or if you live out in the country, soak it in gasoline and burn it thoroughly. Just chopping it up doesn't keep it from being readable to a good forensic specialist.

[a real Sheila]

Yep.
When it comes down to what is important, ultimately I’d be thinking of what I needed to do to protect myself and my own family against being convicted of a crime I didn’t commit. Contacting the police just MIGHT work against the BIL. I’d do what you said and then perhaps later, offer an anonymous tip to the police about the neighbor.