He can issue a ticket if there was fresh pursuit. (That is the GENERAL rule.)
However, if you don't think he could see you, then plead not guilty and have a jury trial.
Q: Is this going to be a problem? Can I just write her and say since it has been so long that she no longer has rights to use my product to create a new one?
A: Yes and yes.
There are tons of facts you would need to tell a lawyer.
Generally, defamation cases are worthless because the bad person has no money and it never stops someone from defaming you.
Q: Is there anyway I will be able to break my lease and not be peanalized for it? Do I have a case to be let out of my lease early as a result of my peace and quiet being disrupted?
A: What did your landlord say when you asked your questions?
Q: Would it be extortion for me to "suggest" to her that if she does not pay me, I will divulge a secret she wants me to keep?
A: Possibly. By the way, if she is known for her trickery, why did you loan her money?
Answers:
1. Your clocking in was your false pretenses.
2. Tell us the statute numbers you are charged under (and I assume the charge was in Michigan).
3. If you are eligible, you should ask for a public defender; you will get time to talk.