It could be a case of mutual out ruds - withholds and overts in particular.
Neither wants to go to jail, and they have a tacit agreement, perhaps unspoken, a line in the sand neither will go over. Much like the cold war, each has enough dirt on the other, each can nuke the other, but neither wants to make the first step, since the retallation would be toxic.
So, much like Kennedy and Khruschev, they rattle sabers, bang shoes on tables, and play at intimidation, testing the boundarys, but not playing for keeps, waiting for the other to seriously screw up, then unload with both barrels and move in for the kill.
Either that or they dipped into the old man's store of pinks and blues a few times too many...
The Mimster
(isn't that DM's favorite tactic, giving high bonuses or trinkets like expensive cameras and what-not, making the recipient a part of the scam, so he can't rat anyone out without hanging himself in the process?)