All they had to go on was surveillance footage of the man.
Lewiston, Idaho must be a small town because this story ran on the front page of the paper.
Right above that story (and the picture from the surveillance video) was a picture of a man painting Christmas decorations on a storefront. The caption identified him as Michael Millhouse.
And the picture looked a lot like the one of the guy who stole the wallet a little further down the front page.
The newspaper worker who noticed it called the cops, who went to visit Michael Millhouse, who confessed to stealing the wallet.
Mystery solved.
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