The question that comes to my mind is when did Apple report it stolen?
Quote:
Originally Posted by GlennD
The fact that the finder of the phone sold it for $5000 tells me he had a good idea of what he had, and brings into question (in my mind) that he tried all that hard to return it.
I have a hard time believing that Chen forked over $5000 for an iphone thinking that he was operating in good faith.
Source at CNet
Under that law, it's pretty clear that it's "stolen property" to me. But that's why they pay lawyers to fight about these things in court. 
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Boy do you have your facts wrong! Chen didn't pay anything for the iPhone. The person who bought it was the head of Gawker media, Chen's boss's boss. So your whole justification for the police smashing down Chen's door just went out the window.