iPhone finder regrets his 'mistake

(WIRED) – The person who found and sold an Apple iPhone prototype says he regrets not doing more to return the device to its owner, according to a statement provided by his attorney Thursday in response to queries from Wired.com.

Brian J. Hogan, a 21-year-old resident of Redwood City, California, says although he was paid by tech site Gizmodo, he believed the payment was for allowing the site exclusive access to review the phone. Gizmodo emphasized to him “that there was nothing wrong in sharing the phone with the tech press,” according to his attorney Jeffrey Bornstein.

Wired.com identified Hogan as the finder of the prototype by following clues on social network sites, and then confirmed his identity with a source involved in the iPhone find.

Hogan has been interviewed by law enforcement investigators but has not been charged with a crime. His attorney says he is willing to cooperate with authorities.

It’s generally considered theft under California law if one “finds lost property under circumstances that give him knowledge of or means of inquiry as to the true owner” and yet appropriates the property for his own use “without first making reasonable and just efforts to find the owner and to restore the property to him.”

The person who found the phone “is very definitely one of the people who is being looked at as a suspect in theft,” San Mateo County Chief Deputy District Attorney Stephen Wagstaffe told Wired.com Wednesday. “Assuming there’s ultimately a crime here. That’s what we’re still gauging, is this a crime, is it a theft?”

On April 19, Gizmodo, which is owned by Gawker Media, published a bombshell story about the iPhone prototype, which had apparently been left at the Gourmet Haus Staudt in Redwood City. It was left behind by an Apple engineer named Gray Powell.

According to the statement from his lawyer, Hogan was in the bar with friends when another patron handed him the phone after finding it on a nearby stool. The patron asked Hogan if the phone belonged to him, and then left the bar. Hogan asked others sitting nearby if the phone belonged to them, and when no one claimed it, he and his friends left the bar with the device.

“Brian opened the phone onto a Facebook page but then the phone shut down,” attorney Bornstein writes. “From that time on, the phone was inoperable the entire time Brian had it.”

Hogan didn’t know what he had until he removed a fake cover from the device and realized it must be a prototype of Apple’s upcoming next-generation iPhone, according to Gizmodo’s account of the find.

A friend of Hogan’s then offered to call Apple Care on Hogan’s behalf, according to Hogan’s lawyer. That apparently was the extent of Hogan’s efforts to return the phone.

After the friend’s purported efforts to return the phone failed, several journalists were offered a look at the device. Wired.com received an e-mail March 28 — not from Hogan — offering access to the iPhone, but did not follow up on the exchange after the tipster made a thinly veiled request for money. Gizmodo then paid $5,000 in cash for it.

The owners of the bar told reporters that Hogan didn’t notify anyone who worked at the bar about the phone. They also said Powell returned several times after losing the phone to see if anyone had found it and turned it in. Powell and Apple’s outside counsel contacted the San Mateo County District Attorney’s office last week to report the phone stolen, according to reports.

“He regrets his mistake in not doing more to return the phone,” says Bornstein’s statement. “Even though he did obtain some compensation from Gizmodo, Brian thought 

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