The ghost is saying he doesn't blame his living wife for turning him into the police. Is "turn sb into the police" report sb to the police?
Mel- and he can't hurt anyone anymore
Ghost- And tell her that I forgive her for turning me into the police
Tell her that she did the right thing.
mel- He says you did the right thing
I would say that it should be "in to", not "into".
Turning somebody into the police suggests that you are making them a policeman/woman!
"To turn in" is the phrasal verb for "to report [to the authorities]"
He turned me in to the police.
I turned my boyfriend in to the police when I realised what he had done.