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Gnizmo said:

In the interest of making sure my advice is in the proper context I need to explain my feelings towards police. I hate them all. Inevitably they are corrupt, and abusive more than helpful. Turning it to the police would probably result in it being "lost" and one of the people in the chain of custody getting a brand new phone. By complete coincidence of course.

See if you can get some contacts off the sim card. After that you are more or less in the clear. You cannot reasonably be expected to find the owner, and thus are not morally wrong on the action. So long as you take all reasonable steps to try and track down the owner then you have done nothing wrong.

That's absoloutely absurd you brand ALL police officers like this, my ex was a police officer and he would never have done anything like that.