Sounds like a legal issue. If you know about it and fail to report it, or worse yet, if you asked him to pay you (which you haven't I understand), but either way you could be considered an aider and abetter or even a conspirator with him and his crime.
Proper course of action would be to report to the garbage company that there is more trash out at the curb than what you put out. What else you tell them is up to you. Snitch on him or play dumb and let the garbage company investigate. Around here the garbage company is run by the county and they try to stay on top of billing everyone except sometimes renters move around. Not sure if yours is a private or public company. I'd be more concerned if it is a public company but either one could still be considered a crime. The cops place a higher priority on theft from the gov and they could say it is a civil matter with a private hauler.
Or you could be neighborly, and tell your neighbor that you don't want to get in trouble for him putting his trash out with yours. And that you don't want to get him in trouble with the law either, but if he does it again his legal bill defending criminal charges and conviction may be more than it is worth.
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