I bought an iPad on ebay that may be stolen

I bought an ipad on ebay that may be stolen. IT IS A HUDE DILEMMA. I have already talked to a police officer where I live but he will not file a police report.
I will explain the situation as best as I can. I bout an ipad on ebay and it said Steve's computer and had an Apple ID of a nother perosn. I contacted that person, in an attempt to find out of he is the rightfulowner of the ipad. He said it was stolen and he is the owner. I emailed him several times and found out her never made a police report of the "stolen" ipad. I talked to Paypal and ebay in an attempt to get my mpney returned. In order to get my money returned, I need the police report. I asked the "steve" the so called owner of the iPad to make a police report. He screamed at me on the phone and said he would in no way make a police report.I asked him  why not. Then he canget his computer back. I hung up on him because he was calling me names.
All the time the seller was ignoring my emails. (Of course, a thief's bahavior.)
I opned a case on ebay. Then it turns out the seller has been talking to ebay representatives many times. They(ebay) emailed me many times and asked me to "work it out" with the seller. Ha! ha!
Of course I am very angry because I have an ipad that cannot be used because it is regsitered to someone else. I cannot get my money back and, as you will learn in the next section, I cannot report it as stolen.
I called the police and pone cam eot my house. He asked me how I got it. I explain that I bought it on ebay. Then I told him I have been emailing with who I think the owner is, Steve from somewhere in California. The officer said I should ask "Steve" to make the stolen computer report. I cannot make the stolen computer report in Hawaii, the police officer said, because the crime was committed in California.
Now a day later I get back on ebay and the seller is communicatinbg with me suddenly. (I guess she has had a chnace to make up a plausable story.)
She said that she sold the computer to someone on ebay.(Steve) He didn't like it and returned it to her but did not erase his ownership or apple registratiion details. She (seller on ebay) said that he is mad that she made him pay the return shipping so he is getting back at her by saying it is a stolen computer.In addition, I pleaded with this "Steve" to erase his ownership details so I can use the computer which I actually purachsed. However he refuses to erase his ownership or registration of the computer.
This is my probelm: I want my F______ money back but the seller won't give me my money back. And ebay said for me to "work it out with the seller"
Very funny! I am the only one who is loosing. I paid $350.00 for an iPad that I cannto even use. It may be stolen and it may not be stolen and a stupid police officer in Honolulu will not even report it.
What can I do?
I have the iPad. I have the serial number. Is ther a way of finind anything out about this computer with the serial number? (I would like to know if it is stolen. I would like to know who really owns it. I would like to get mymoney back and forget this crap ever happened.
Kim 1958 just another old person with a computer

You have a valid claim with eBay against the person who sold it to you. It was sold to you as a usable iPad. The person knew it had a persons ID on it , hence it was sold under false pretenses. Keep all your correspondence with all parties. File the claim within 60 days with eBay and Paypal. Step one is always work it out with the owner, you tried, now file the claim. If they are a legitimate business you'll get your money back, they can't afford the negative feedback. Remember the person knowingly sold you a iPad you could could never register. Misrepresenting a product is probably the number one no-no with eBay.  Good luck.

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