Please explain to me how someone losing an item, another finding it equates to theft.
The original finder knew the identity of the phones owner from his Facebook page. When he was unable to return it to the owner (One point that often gets left out is that he tried to return it to Apple, but nothing on the phone said Apple was the owner, he only assumed they were) he should legally have then turned it over to the police, not sold it for $5000.
California’s penal code, section 485:
One who finds lost property under circumstances which give him knowledge of or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft.
California’s civil code, section 2080.1:
If the owner is unknown or has not claimed the property, the person saving or finding the property shall, if the property is of the value of one hundred dollars ($100) or more, within a reasonable time turn the property over to the police department of the city or city and county, if found therein, or to the sheriff’s department of the county if found outside of city limits, and shall make an affidavit, stating when and where he or she found or saved the property, particularly describing it.