Just the facts, Ma'am.
But finding the wallet is not theft.
We aren't debating the sale of the phone..... it's that there are a constant, lemming-like flow of FB's saying that the initial acquisition of the phone was theft. It wasn't. Nobody here seems to have the IQ to be able to differentiate between the events.
You are right - the instant he "found" it he committed no crime. But most U.S. States have laws regarding mislaid property. Here's the relevant excerpts from California Code regarding found property and what to do with it (and how, in this case, it became a "theft").
CA Civ. Code Section 2080:2080. Any person who finds a thing lost is not bound to take charge of it, unless the person is otherwise required to do so by contract or law, but when the person does take charge of it he or she is
thenceforward a depositary for the owner, with the rights and obligations of a depositary for hire. [IN ENGLISH - YOU DON'T HAVE TO PICK UP THE IPHONE, BUT ONCE YOU DO YOU ARE RESPONSIBLE TO THE OWNER]
Section 2080.1. (a) 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. [IN ENGLISH, IF YOU DON'T KNOW WHOSE IPHONE IT IS, AND IT COSTS MORE THAN $100, YOU MUST TURN IT OVER TO THE POLICE WITHIN A REASONABLE PERIOD OF TIME. YOU HAVE NO RIGHT TO KEEP OR SELL IT.]
Section 2080.2 - TO SUM UP, THIS SECTION SAYS THAT AFTER 90 DAYS IN POLICE CUSTODY, YOU CAN CLAIM THE ITEM, UNLESS IT COSTS MORE THAN $250, IN WHICH CASE THE POLICE DEPARTMENT HAS TO PUBLISH IN A NEWSPAPER OF GENERAL CIRCULATION THAT IT HAS FOUND THE ITEM AND WAIT A PERIOD OF TIME BEFORE HANDING IT OVER TO THE FINDER.
California Penal Code
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. [IN ENGLISH, THE "FINDER" STOLE THE IPHONE. SEE CALIFORNIA CIVIL CODE 2080.1 ABOVE WHICH PRESCRIBES, BY STATUTE, THE EFFORTS THAT MUST BE MADE.]
496. (a) Every person who buys or receives any property that has
been stolen or that has been obtained in any manner constituting
theft or extortion, knowing the property to be so stolen or obtained,
or who conceals, sells, withholds, or aids in concealing, selling,
or withholding any property from the owner, knowing the property to
be so stolen or obtained, shall be punished by imprisonment in a
state prison, or in a county jail for not more than one year.
However, if the district attorney or the grand jury determines that
this action would be in the interests of justice, the district
attorney or the grand jury, as the case may be, may, if the value of
the property does not exceed four hundred dollars ($400), specify in
the accusatory pleading that the offense shall be a misdemeanor,
punishable only by imprisonment in a county jail not exceeding one
year. [IN ENGLISH, THE PURCHASER OF THE STOLEN IPHONE MAY FACE UP TO A YEAR IN PRISON. GIVEN THAT GIZMODO SAYS IT KNEW HOW THIS IPHONE WAS ACQUIRED, THERE DOES NOT APPEAR TO BE ANY DEFENSE TO THE "KNOWLEDGE" TEST - GIVEN THAT THE LAW REGARDS THE FACTS OF HOW THE "FINDER" ACQUIRED THE IPHONE AS THEFT.]
Hope this helps for all who don't want to speculate regarding the law.