Bought an iPhone off eBay which has since been reported as stolen what should I do?

Long story short it would appear that I bought a stolen iPhone 6 off eBay a couple of weeks ago. Initially it worked fine however I opened a case with the seller as the phone appeared to stop working (which they denied). After purchasing a Checkmend report it would appear that it is stolen. Now when confronted with this information the seller is requesting that I send it back for a full refund. Naturally I plan on going to the police with it but I'm concerned that if I do the seller will get away with selling stolen goods as well as my money so my question is; if I hand it into the police is there anyway to get my money back? My case against the seller is still open with eBay but where do I go from here?

Any help would be appreciated
Thanks

PS Checkmend report number 4-CE076150BE3-65:085F4383

You should inform eBay of the matter and give them the sellers username and than they would handle that, and you should go to the police with the stolen phone and let them check it, you should bring along documents and info that shows you bought it online without knowing.

Why don't you make a note of the serial number/other numbers that could be of use on the phone, then send it back, get your refund, then send all of the information to the police including details of the stolen report.

Wait for ebay to resolve the case. They will most likely refund your money without having to sending the phone back.

I would go into the police station and ask them what would happen. Tell them your just a bit worried about buying online and things like this put you off so you thought you'd ask.

Iphone 6 is just out, don't you find it suspicious that someone is selling a brand new one on ebay?

Never, ever buy anything on Ebay that isn't paid through PayPal. That's it, nothing gets paid without protection

If you are in possession of stolen property it must be returned. The fight to get your money is libel to take longer and you still might lose.

Lesson learned @ a price dot dam