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Nobody need to reimburse the OP for his misinvested $120. Telling him what is morally correct does not entail the burden of ameliorating his loss. That would be charity, which is optional by definition. No one has any moral responsibility to make the OP financially whole again.
He bought stolen goods. He gambled and lost. IMO, paying $120 for a crippled Kindle is probably punishment enough. If it were me, I'd want to get back at the guy who ripped me off, which is why I would go to the police. No real moral high ground here, just the lust for revenge.
Yes, it would cost more in police time to investigate this scammer, and honestly, they probably wouldn't bother with it. But we're not talking about a single loss. If this guy were caught and went through the judicial system, it could prevent dozens or hundreds of such scams in the future. This is the only one we know about. He might rat out a person who actually stole the device and sold it to him before he passed it on to the OP.
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