Gadget blog under investigation for buying 'lost' iPhone prototype

In a continuation of one of the more bizarre stories of the year, gadget blog Gizmodo is now the subject of a police investigation after it got its hands on the lost/stolen/left-in-a-bar iPhone 4G prototype.

The story so far goes that the rogue prototype was found in a bar, disguised as a 3G model, having been left there by accident by an unfortunate Apple engineer. The finder played with the phone for a bit, found out what it was, and later allegedly sold it on to Gizmodo for $5,000. Gizmodo also performed its own tests on the handset, which by this time had been largely disabled by Apple, and released further details and photos, before returning the lost property to its rightful owner - who by this time was asking for it back.

Apparently, however, the law takes a dim view of buying and selling property which isn't yours to sell; and now Gizmodo is under investigation for its part in the debacle; and it remains to be seen whether there is deemed to be enough evidence to be worth pressing charges.

Meanwhile in another entertaining twist to the tale, it turns out that the iPhone finder tried to return the prototype to Apple, but was told by support desk staff that it was most likely a cheap imitation and not to worry about it.