How did the cops find out she had the phone? Did she make calls on it? If she did she's probably guilty of theft of services if not theft of the phone. You could hire a lawyer to represent her or at least consult a lawyer to see what can be done.
In short, you should hire a lawyer as soon as possible so that he can begin timely intervention, negotiation and preparation. First, taking property and having possession of it are entirely two different things. Unless the police have some evidence that she was one who actually took the phone AND that she had the intent to permanently deprive the owner of the phone, a theft charge is not viable. While the district attorney may elect to proceed on a possession of stolen property offense instead of theft, that charge would also not be viable unless the district attorney can show that your daughter knew and should have known that the phone was stolen and not simply lost. In any event, an attorney may be able to show the district attorney that this case lacks merit and have the charges refused prior to the filing of a bill of information. .
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