Glad you gave us an update.
Personally though, I would be absolutely TERRIFIED to have my passport in anyone`s hand but my own. No matter who they are. There are way too many bad things that can happen... And from what I know, anywhere reputable should never supposed to ask to hold on to your passport for any reason. I believe there is even some policy/law against it. It should always either be in your hand or in your sight.