Kim,
 
I'm not a lawyer and my advice shouldn't be taken instead of legal council,
you should probably contact a lawyer (phone calls are free and usually the
first visit it too) but as I understand credit card law you shouldn't be
liable.  The credit card company will have insured the use of that credit
card for the full amount fraudulently used less $50.  In other words, the
stores got the money for the purchases, although the owner of the credit
card is out $50.  If the person who defrauded the credit card company is
caught, (s)he is in deep trouble.  As you mention in your post, credit
card fraud is a major offense.
 
I would do three things.
 
1) Contact a lawyer and based on his/her advice....
2) Contact the credit card company and find out what they would like you
   to do with the merchandise.  The credit card company will do one of two
   things.  "Keep the stuff" or "Send the stuff back".  Get the response
   in writing
3) If the credit card company's say send it back, contact each of the
   stores and give them a low down on the situation.  They may say "Keep
   the stuff".  Get the response in writing.
 
Keep the list posted on what happens and let us know if we can help out.
 
Cheers!
Matthew in Colorado.
 
"We have to work in the theatre of our own time,
with the tools of our own time" --Robert Edmond Jones
[Posted in FML issue 2995]