Yeah, you're right. If you say it's broken or you have it, they want it! That's why even if I have a phone and it can't be repaired, I just say I lost it because they even give you a time limit on returning it before they charge you. So to avoid the hassle I just say it's lost. (Not telling anyone else to do it, but that's what I do.) Anyway, I'm glad you got it back. Props to honest ppl.
