$600 I phone stolen and Apple will allow thief to reactivate MY phone!!!

Ridiculous.  Apple says "we aren't the police".  In other words when someone calls to set up an account with Apple and gives them the serial number of their new phone (stolen from me) Apple allows them to activate it.  I'm not asking Apple to turn in this thief.  I'm asking them not to allow anyone to use MY phone. 
When I call Apple they ask for my user name and password, etc.  But a thief calls in with a phone that Apple knows is stolen and allows him to open an account.
What is going on?

What's going on is that Apple manufactures phones.  That's it.  Just like Samsung, LG, Nokia and Motorola. None of those companies is in the policing business.  Apple doesn't "activate" the phone, the carrier does. You don't call Apple and open an account.  You call a carrier.  Carriers are the ones to block a phone from being activated on their service.  Most don't get into the policing business either.
Call you carrier and the police and report the theft.  That's all you can do. 

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