I think you did the wrong thing by jumping to conclusions based on assumptions. You assumed just because he's a bum and was carrying a nice bike that it can't possibly be his. Granted, the obvious clues of a stolen bike are there but if I was you in that situation, I would have minded my own business. You're not a cop. You shouldn't have stole it because you think it's right thing to do. If you suspected the bike is stolen, you could have reported it and left it as that. You, however, stole it, ran an ad and once no one responds to it, you profited from it by selling it. There are many reasons why the bum was carrying the bike and stealing it might not have been one of them. Let me ask you a question. What if a cop happens to drive by when you stole the bike from the bum when he went into the liquor store? Good luck explaining that to the cop. Now you are in possession of stolen property and unless you're the original owner, you're in trouble regardless what you say to the cop.