Quoting
Mr. Knowitall
Then how can there be a picture of you talking on the phone?
See if you qualify for a court-appointed lawyer.
There's more to it than that. The picture did not come from nowhere. Somebody gave you the phone, which you used. Somebody, perhaps the same person, perhaps somebody else, took a picture of you using the phone. Somehow it is apparent from the picture that the phone you were using was the stolen phone....
If you told the police, "I never had the phone at any point", and then they showed you a picture, "Isn't this the phone, right in your hand?", you would have undermined your credibility.