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No. You're no idiot. If, somehow a cop was to learn you bought a PSP from someone for such a ridiculously low price (A stranger too!) you could have been charged with possesion of stolen property. The law (around here) states that a reasonable person would know, or should have known that property was stolen.

Either that, or the thing was broken. Trust me, you did the smart thing. Unless you're a crook. Then, you violated the "hustla's code".