Please help, Verizon is charging me for a returned device that came up as an empty box

Question

Hello Everyone,
I have done all I could to right the wrong that Verizon is doing to myself and I'm sure others have experience this same issue that I'm going through. Back in April 2012, I was having issue with my phone overheating and losing charge quickly; so, I went to Verizon Wireless store and see what they could do about it. They offer to order me a certified like new replacement iphone 4s and I told them yes that will be good. A couple of days later, I received the replacement iphone. So I packed my defective iphone 4s and follow everything that was on the return instruction. I packaged it and used the smart post return label as was instructed on the paper. I went to my local USPS and dropped it off to their associate. I kept the tracking smart post label receipt; so, I could tracked it. On April 18, 2012 the phone was delivered and accepted at Ft Worth, Texas which is the Verizon Wireless warehouse. Two weeks later on May 2, 2012, I got a text msg stating that my account will be charge 500 dollars for unreturned device. I called customer service and spoke with a rep named Domenik. I asked him why was I getting charged this amount when the phone has been delivered and accepted on the 18th of April. He told me that the warehouse was slow and sometimes lazy to process it (if verizon doesn't believe me, i'm pretty sure they record this conversation call and I can ask them to play the recording of this call; so, they can hear that this was said to me). I didn't make a big deal about it as long as they are able to resolve this and take the charge of my account. Domenik proceeded to start a returned investigation form to their warehouse and gave me the form # 119072. He said that everything will be taken care of it. So, I asked again if there was anything I needed to do on my end and he said no. I took his word for it and just waited.
About couple of weeks later on May 30, 2012, right about the time I usually get my bill update from Verizon. I got the bill and it was large amount ($1,136). I called customer service again, to find out what is going on and why is my bill so high. I spoke with a rep named Gibelle and she told me that when the return investigation was done the box came with no phone. I was asking her how can that be? She was telling me that there was no phone and that I should contact their fraud department, which happened to be close by the time I called. The next day on May 31st, I spoke with a rep named Daniel who actually was helpful and polite. He took it a step further and see if he can look up the phone with the IMEI number. To verify it, I gave him the IMEI number from the original box of the iphone and it matches the one that is active since May 11 on a different Verizon Wireless account. So he tried to give me a credit pending for 849.99 which got denied since the box came as empty.
I called again to follow up and ask why are they denying it. I spoke with this rep named Aliyah, who was very rude and didn't belong in the customer service field. She wasn't very helpful and from the sound of her tone, she was suggesting if i were you I would file a police claim and telling me that this out of their hand. So I asked if I could talk to her supervisor; a moment later after being on hold, I spoke with a supervisor named Ken. I explained my situation to him and he says that he understands and that he'll open up a fraud case with their fraud department and he'll follow up with me after about 24-48 hours.
From what I have experience so far; I didn't want to rely on any Verizon employee. So I called the customer service and asked to be transferred to their fraud department. I was able to get in touch with someone in the Fraud department and get a case started. I was told it would take 3-5 business days to follow up from the date it was open (June 3, 2012). I waited after 5 business days and heard nothing. I called directly the Fraud department that following Saturday and spoke with a rep named Shannon, he told me that it looks like my case hasn't even been looked into but he said that'll he would be able to transfer me to someone who can have access to more information regarding my case. So I spent about an hour on hold, and I ended with him again and he said that they were short on staff on the weekened and experiencing high volume calls. He suggested I call back later and try again. I called back several hours later and spoke with Rob. He told me the same thing that I would need to call back and talk to someone who has more access to this case. So, he recommended I call back on Monday. That following Monday, I called back and got a very unhelpful and rude ( right from the very beginning) rep named Aneth. She was telling me do you have the return receipt and told me that without it they can't do anything. This was completely something different from others have been telling me when I started this case. So I told her, no one has told me that this required in ordered to start this investigation case. I asked to be transferred to a different rep that is willing and knowledgeable about what they're doing. I was then transferred to this rep named Leean and tried to help me. I told her my situation and everything that I have done my end. She asked to file a claim with my local USPS and FedEx. I told her I have done that already and there were nothing that both USPS and FedEx can do for me. USPS have said that it was a prepaid label and I wouldn't be able to file a claim and that I wasn't the recipient. She ended up telling me that I would need to get USPS and FedEx to contact them and that they would speak on my behalf regarding this case. So that night, I called FedEx again and see what they can do about the starting a claim case and calling Verizon. I spoke with a FedEx rep named Jim and he told me that they won't be able to do anything; since, it was a smart post return label. At this point, I'm running out of options that I can do on my end to resolve this issue. I went to my local Verizon Wireless store and ask to see if they can help me with this issue. I was told to file a police report. So, I finally filed a police report at my local police station. The police officer gave me the case number and will see if anything can be done about this. The police officer even said I hope they're not charging you for this and I said, "yep verizon is actually charging me for 850 for this". He was surprised when he heard that. 
Today, I just a voicemail from the Fraud department stating that this investigation has concluded and that it wasn't fraud and nothing can be done about my issue. My bill is about to be due on June 20th, and I told the customer service rep and the reps from the fraud department that I will continue to pay my normal monthly bill but I won't pay the 850 dollars.
I ask and beg anyone out there who has experience this same issue as myself or who is going through the same; for information or help on how to get this resolve. I feel like verizon is giving me the run around and shafting me big time. I have been a Verizon wireless customer service since my freshman year of college and I don't want to leave Verizon. They have been good to me the past 10 years and have gotten great coverage on their network. This is the very first time I'm experiencing this with Verizon and so far it has been a nightmare. I followed everything that was on the return procedure and used the smart post return label and in the end, I'm the one that is being penalized for it. It's insane that Verizon won't do anything about it and keeps telling to try a FedEx claim or USPS claim. This is robbery, unfair, wrong and they shouldn't be allowed to do this to their customers. I will continue to fight this because I know for a fact that I returned that iPhone in that box; which is now currently active since May 11 on someone else's account. So, please anybody who can help me out regarding this matter; I would greatly appreciate it.
The last option I can think of is to take this up to court and hire a lawyer. I don't want to leave Verizon but if it comes down to it, I guess I will have to. This is wrong and I asked everyone who can help me to please do so. Sorry for my rant, but I have done everything that I can do to resolve this issue but it has gotten me nowhere. It's just unbelievable and sad how Verizon could treat their customers like this, get away with it and not even help.
Thanks Verizon wireless for shafting a loyal customer. Loyalty goes both ways, I guess with Verizon it's only 1 way.

Answer 1

Tmobile did the exact same thing to me. So that is customer service at work in general. Nice try though lol.
To the OP
I see you said You paid for shipping, did you Insure it? Claim insurance on it. If you did not, It may not be Verizon or your fault in the sense of the phone not making it to the warehouse. There are people out in the postal world that will steal phones that are not insured. It could have been a Verizon employee, i suppose.
But, if this was to be a bought in court, if you shipped it with out insurance, sadly your at fault.
Do you still have the Serial number of your old phone? If so, you should be able to track where your phone is (if it is reported as a defect/damaged) If so, you may be able to use that as proof. If it does not show up as a defect or what ever they determine use as a loss, then you know it did not make it to the warehouse to be checked in. I would suspect Apple or Verizon could tell you what the Serial number came up as.