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UPDATE

sprint fraud rep didnt go into detail, but she tracked the persons account # and said the phone was purchased from sprint and sent directly to me. had it been through insurance, there would have been a packing slip from asurion(which there wasnt).
so there is no insurance fraud.

from the rep's explanation, it sounds as if the phone was purchased as an add-on to for an existing customer, sent to my address, and then the new line was cancelled within 30 days. this would make sense if the purchaser gets the phones for the corporate rate of $199.

will sprint cancel the line without getting the phone back, or will they issue a chargeback to the buyer? i remember years ago you could open a new line of service with cingular and get a phone at discount, cancel the new line of service without penalty and keep the discounted phone.

now the only thing im hoping is that this phone wasnt added on to somebodys account without them knowing