You are a co-committer of a crime
Technically, you are just as guilty as he is... you went along with it willingly & you even benefited from it
you need to go back to the store & return the equipment that you have... at least you will then have attempted to do the right thing.. and when all this comes down to a judge, that will work in your favor
at the very least, take that phone back to him & then don't have any contact with him anymore.. ever... however, consider that this would leave nothing to prove you gave it back to him & if he sells it, and says you never gave it back.... then you could end up with Sale of Stolen Merchandise as an additional charge to add to your list
The cost of the phones is what can make this even more serious (difference between Theft & Grand Theft)
The store where you bought the phones, as well as the company is through can press charges... in addition the person who's ID was used can press charges (and will end up having to press charges in order to get that contract removed from his credit record)
Whatever you do don't sell that phone... that will add another charge to the string of charges
Your friend picked a very stupid thing to do... this is going to be so easy to catch... and it won't take long for them to figure out what happened... then reference back the security camera tape... they have both of you
the truth is.... you NEED a good Criminal Lawyer NOW
If you are under the age of 18... it would be wise for you to tell your parents so they can talk with attorneys on what to do
I would still highly suggest you return that phone to the store where you got it from