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

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