Interesting story (so I've been told by others) about what happened to us last year. Bought our son a new 64GB 6S+ for Christmas and it was stolen from school a month later. Had some kids say they saw a certain kid with it, we offered a reward for its return, etc but nothing happened to really pin it on the accused kid. Find My iPhone immediately showed it as offline so I locked it thru Find My iPhone. We got the police involved and called AT&T to block the phone. Was not happy but just had to live with it. Gave my son my iPhone 6 and I went back to an old iPhone 5.
Couple of weeks later I was using Find My iPhone and noticed a device named "Owens Family's iPhone". Clicked on it and it showed offline but its last location in a city about an hour away at an apartment complex. From my understanding of what happened there was a court order for the apartment complex asking if there is an Owens family at that complex. They said yes and turned over the appt # so then a search warrant was issued for that apartment. Cops went to the appt and a kid admitted to having the phone but said he gave it back to the kid who gave it to him. When asked who that kid was he named the same kid who was originally accused of taking it. A search of the appt did not find the phone.
So, the 17yr old kid (originally accused) was charged and we went to court a few months ago. He/his mom/attorney agreed to accept responsibility without a trial and pay for the phone ($850 + tax). Their deadline to pay passed and the judge granted them another 2 months. The last deadline was Sept 14 and they have not paid ALL of the money and I don't know how much they've paid. Judge says the kid is being arrested during court appearance next month and will stay in jail until the phone has been paid. We will see. Bought our son a new 128GB iPhone 7 on release day and I got my 6 back.
Still not sure how they got into the phone, changed the name, etc but It's still tied to my son's Apple ID in Find My iPhone.
Doesn't sound like an interesting story to me. Court dates and teenagers ending up in jail? Why not just get insurance so when your son loses his phone again, you just pay the deductible and get another one. All that seems extreme for an iPhone