Alright, so just checking over it there really isn't much to go on. Pug already agreed that he should of tried to arrest the person that was wanted which is a simple mistake, but not worthy of any punishment or talking to as he recognizes what he could of done differently. The slight conversation we get to overhear is him saying "I heard you's is having a good time unbailing your friend" or something like that. If I'm roleplaying, I often ask questions like that myself to either avoid escalating situations or creating issues. Outside the stray shot that hit him, seems people were just having a bit of fun and I'm not here to be the fun police and treat this as serious RP. This report will be denied, but I will follow up with Pug.
With that said, it seems your main complaint stems from unsubstantiated claims of Pug allowing his friend to break rules on a consistent basis while protecting him as staff. I will be contacting you further to investigate this and see if we can shed some light on the situation. Thank you for taking the time to make a report.