The engineer is newsworthy. He contributes to the facts of the story. If you want to be angry with someone how about the person who found the phone?
The person who knew the name of the owner and still sold the phone to the tabloid. The person who had to click two virtual buttons to be talking to someone who knew the owner and and could get the phone back to him. The person who could have Facebook messaged the owner and returned the phone. But he didn't. He sold a piece of obviously lost property to a tabloid.
He probably could have gotten a much nicer reward from apple anyway considering their market cap these days.