The fiance of Dustin Waller bought him a second hand PS3 from a store in Cleveland, but little did she know it was infact a stolen system. However, the police were able to track the system whenever Waller turned on the system as the original owner of the PS3's PSN ID was still stored on the system. The police confiscated the system and Waller was compensated by the store with an unwanted Xbox 360.
To quote: Police appeared on Waller's door after the purchase, and they inquired as to how he had come across the system. According to the Salisbury Post, the police were able to track the system whenever Waller turned on his system.
The original owner of the PS3's PSN ID was still stored on the system, and it was set to auto-login when the system turned on. By tracking Waller's IP address, they were able to find him.
Waller is of course innocent in the whole debacle, but police confiscated his system nonetheless. While the police look for the person who sold the stolen system to the games shop, Waller was given compensation from the store he didn't want: an Xbox 360.
"Waller is appreciative of the offer from the store but notes the Xbox isn't nearly as expensive or sophisticated as the PlayStation." More PlayStation 3 News...