I bought an iPhone 5 off of craigslist, which unbeknownstome was stolen

Question

Before I start, I just want to let everyone know that I know exactly what most of you will say, but I beg you to read this with an open-mind and understand where I'm coming from and my position. I am also a victim in this situation, just like the girl whose phone was stolen.
I bought an iPhone 5 from somebody on Craigslist who told me it was his girlfriend's phone which he was selling. Prior to me buying it from him, I interogated the guy asking him all sort of different questions such as the reason he was selling the iPhone 5 and condition of the phone and the guarantee, etc. I wanted to make sure it was not a stolen phone or a messed up phone that was no working properly. I freshly remember it being a 10-minute conversation covering all of that,so I want to make clear, that I indeed had no idea it was a stolen phone.
Now, as soon as I had bought the phone from the guy I went to a redpocket store to try and activate it with their nano sim card, and that's when I came across with the iCloud Activation Lock with a message which said something along the lines "This is a lost phone, please call me" with the number written down. As soon as I saw that, I called the guy who sold me the phone to ask him what the heck that was about, but he did not reply and that's when I realized I had been officially scammed. I contacted the original owner of the phone and we talked for hours comparing notes on the guy and sharing our story about how her phone was stolen and how I bought the phone from this guy etc. She told me she already had a new phone(iPhone 5S) but she still had a lot of photos on that phone and that she wants to see if she can recover it somehow so she wanted me to return it her phone and she would give me $100 recompense. When she offered that deal I was torn...cause I did not feel like it was a fair deal, but at the same time I wanted to help her. So I eventually made it clear that I wasn't too happy with that deal so she actually came up with a new one...
"Give me $200 and you can keep the phone, but we would have to meet at an Apple store, that way I/they can make sure all my memory is wiped out"
I don't know if it's just me, but it sounds too risky. Do you guys think she might try to pull one under me and try to stay with the phone without me getting something in return? God knows who she might show up with. Can she do that? When it comes down to it, I am not the person who stole her phone...like I said, I am a victim, just like her and all I wanted was to work something out which would be fair for the both of us. I could have easily sold it forward to another person for the same price I was scammed, but I didn't cause I don't do unto others what I don't want others to do unto me. So just think about that before you all yell at me saying "RETURN HER iPHONE BACK!!!!11111"
So yea, this is basically a post for ideas and suggestions about what I should do.

Answer 1

It's rare that Craigslist phone scam victims like yourself are able to identify or get in touch with the original owner.
Given that you're in contact with the original owner and you both can identify the thief I think the police might be able to help in this situation. If the original owner is willing to file a police report about the stolen phone and you're willing to turn it in to the police then the distict attorney would have an "open and shut" case with the evidence (iPhone) and testimony of the proper original owner (victim) and testimony from the buyer (victim). Get her to put in writing a summary of the situation where she identifies you as a victim and identifies the thief. If you can get her to get that Affidavit notarized at a Notary Public then that protects you to some degree.
Depending on the situation you might just get back in touch with the ex-boyfriend at that point and tell him point blank you have a legal notarized Affidavit identifying him as a thief and seller of stolen goods and you'll take it to the police and District Attorney if he doesn't refund your money in full. Then get your cash, return the phone to the proper owner, and then if she can get it reactivated buy it from her or take your cash elsewhere.
If you and the gal go the police and present an open/shut case eventually the iPhone (evidence) will be returned to the gal after the boyfriend is convicted and if you're a party to the case you may get the judge to order compensation back to you of the amount of cash he stole from you via fraud. That's the ideal world, but remember we have a "legal system", not a "justice system" and anything can happen in court. I strongly suggest getting a notarized Affidavit from the gal identifying the thief and identifying you as a victim. That notarized document would provide the most protection for you in any way the situation unfolds. If the original owner reconciles her relationship with the boyfriend and declines to press charges against him then at least with the Affidavit the D.A. could proceed with that as her testimony and again protects you.