Help with stolen iPod. <Resolved>

My grand daughter had her iPod stolen earlier this week. Her mom filed a police report and notified the school. Notified Apple and they locked it.
However, Wednesday morning it pinged at school really early in the morning. This morning it pinged at an address in town. A single dad and a 5 year old live there but a bunch of kids live in the neighborhood and the police think maybe someone "borrowed" the wireless network this morning.
WORSE... they jail broke the iPod and added it to another account and even though we reported it to Apple as stolen, Apple says that there is nothing they can do and wont give the new account name. Unbelievable!
 
So, does anyone know anyone? Does anyone know what the next step is? They are going to drive through the neighborhood to see if my grand daughter recognizes any kids. It is an iPod 5, just updated to iOS 8.2
 
Thanks for any help or ideas and if you think I need to post this somewhere else, please tell me that. I guess it is a small thing in the grand scheme but not to a 6th grader.
 
Julien
 
Update: The lady across the street saw a girl get off the bus with the iPod, they looked at each other and the girl ran into her house. She called my daughter, daughter called the police. They went over to the house and the mom pulled into the garage right in front of them. The police officer told mom what was going on and the mom said I haven't seen it but I'm sure she has it. She invited them in to look. The girl who stole it denied she had it until her little sister spoke up and said, "yes you do". Then the police told her again to go get it. Then she said I don't have it right now, can I get it to you later? NO... get it now! So she went and got it, she had hid it under the grill outside. Then they asked if there was a case, daughter said "yes". The girl said no. Little sister said. "yes there was". Police said "get it". She went and got it. We got her PW and deleted all her pictures etc. She had deleted all my grand daughters contacts etc. and a book she had written but my daughter has that backed up.
Daughter is resetting it now and trying to delete everything so they can start over. I think it just got done!
Resetting PWs now. (thank God) !
 
The police were all over the girl, said she would be suspended and maybe expelled and sent to an alternative school where, in the words of the police to her, "you will be with other people like you". She hasn't decided about pressing charges, she is waiting until she finds out what the school does. If they do nothing, then she will.
 
Good ending. Mom (my daughter) followed up and did the detective work and the police were appreciative. Said they wished everyone would do that and them call them to do the confrontation. They said they don't have the time or resources to do everything but it really worked out well.
 
It has been a very hard week in many ways but has turned out exceptionally well.
 
Julien
 
 

Thanks Karyn. I cannot believe Apple would not help, knowing it was stolen then seeing it added to someone else's account. That is bad business IMO, but I guess in this world I can see why they would be hesitant but the police are involved. I think if we bug them enough they will do something.
 
I'll let you know what happens. My daughter said it just pinged again and someone who lives across the street from the address it pinged at, told my daughter she could come to her house and watch who gets off the school bus and where they go. I told her to be careful, she has a temper and isn't afraid of anything.
 
J

See above! We got it back! Wow...
 
Julien

Julien, so glad you got this resolved.

K

Glad to see double posts don't happen anymore