The explanation is in the article along with the person who found it attempts to return it TO APPLE.
http://gizmodo.com/5520729/why-apple-couldnt-get-the-lost-iphone-back
(s)
Sir you are violating the Obamanomics wealth creation law of 2010 through your malicious refusal to upgrade your phone to a new model. (produced by a campaign donor)
(/s)