Thats BS. If the car was stolen and it was found on thier property they are liable. If they can't prove where the car came from then they can be prosecuted.

If it were me, I would go to the captain of the precinct involved. If that doesn't go anywhere, then go higher. If you stir it up enough they will look into it. Ask for proof the car was finger printed and processed by the cops.

To many people are OK with just getting an Ins. claim and not prosecuting.

A similar situation happened to me, except I had to stay on the cops since the Ins. company wouldn't reimburse me for all the custom mods. After pushing and talking to the right person, it got dealt with.

You did a great job cleaning it back up though.