I've read about that and according to what I've heard, California state law requires much more effort than the guy who found the phone made. Also, if he is unsuccessful at finding the rightful owner after such an effort, he is only allowed to claim ownership after 90 days. That's CA state law.
So, you can stop repeating this. He did not make the required effort, in the eyes of the law. It was not legally his property to sell.
Think it is 3 years.