Actually, I just came up with a different theory for what might have happened. Have you seen Brasil? A typo changed the name of a known scoundrel to an innocent fellow who promptly gets lost in a Kafka-esque bureaucratic hell trying to right things that went horribly wrong.

Given that they showed up, looking for you with what appeared to be the sort of firepower normally reserved for drug kingpins and such, I'll wager that some kind of typo led the cops to believe that the holder of your phone number was an evil-doer terrorist of some sort. Of course, evil-doers are likely to be using stolen phones, in much the same sort of way that Al Capone also happened to do mail fraud. They're just evil like that.

As such, I'll wager that Amazon.com did nothing wrong, and that the error resides entirely with your local police force and/or your cel phone service provider. Amazon may then rightly insist that they've done nothing wrong, leading you inexoriably into the aforementioned Kafka-esque bureaucratic hell that stands between you and the recovery of what is rightfully your cel phone, sitting in some lame evidence bag, buried in a police evidence room.