Originally Posted by mcatano
While your anger and frustration are certainly understandable, there's a pretty good chance that they are misguided.
You have no idea whether or not the guy who stole it is the guy selling it. This dude could've found the bike (or even just the frame) at a flea market or pawn shop or whatever and bought it cheap with the intent to flip it as a fixed gear. Thieves are lazy, not stupid; if the bike was stolen that recently, it'd be really surprising if it turned up on CL in a recognizable form. Likewise, I doubt the person who stole it would be willing to put the work in to strip it and rebuild it. Strip it, yes... rebuild it? Again, thieves are usually pretty lazy.
If you actually have a means to prove the bike is your friend's (card in the seat tube, serial number, SSN etched on the BB shell, etc), bring the police with you when you go to "buy" it. If you can't prove it's your friend's, then you're pretty much SOL.
+1.
oh, and to the OP, i'd recommend sticking with option number 1.