Order and Refund Mayhem

I ordered an Apple Xs 64GB on October 7, 2018 at a store. The store did not have the phone in stock, so they said they could ship it to me. Fast forward to day of supposed delivery: UPS reports phone as "stolen", this was a Friday. I call ATT on Monday, they say I need to go to the store, so I go to a store and the store says they cannot help. I call ATT again, they say I need to call UPS, however UPS cannot tell me anything except that they'll provide further details to the shipper (ATT). I call again, ATT says they'll open a case and I"ll hear back Friday. Friday arrives, no word. The next Monday, I call. I hear that the case was completed and it takes a week for a new phone to ship, but I should receive a tracking number Friday. Friday arrives, no tracking number. I call again the following week, the person I spoke with says the case was not entered properly, 2 hours later, and learning that I can no longer "return the phone", even though I have never received it, because it's past the return period, he gives me a case number and expected completion date. The date passes, this time I contact ATT via online chat, the woman I spoke to tells me AGAIN that the case was entered INCORRECTLY. This time after it has been "entered correctly" I email the transcript to myself. Within a few days I receive a text saying the case was completed. I check the bill, the phone and the payment are still on my account, even though, I was TOLD that EVERYTHING would be removed, because I now want to LEAVE ATT. I call again, I speak with someone in refunds, he says he'll submit a case to have the refund of $488.75, the down payment I made, to be refunded to my card, but that he couldn't do a refund for the payment to be taken off my wireless account at the same time. I say "that's fine" because I'm more concerned with receiving a refund for a phone I never received at the moment. I receive a text on November 19, 2018 stating the refund has been processed, and, since I understand that refunds take a few days to process I wait until after the holiday. That brings us to today, where I still have not received my refund, so I call ATT again and get bounced around to 4 different people who all tell me that they can't help, with the last person telling me that she "cannot help or transfer" me and that I would need to call the 1800 number back and ask for "wireless". I do this, the man I speak to tells me my "claim got denied and to leave ATT, you will need to pay off the phone". My questions is: HOW DO I LEAVE ATT? I AM NOT PAYING FOR A PHONE I HAVE NEVER RECEIVED.

TLDR: ATT is refusing a refund for equipment never received by the customer because it was lost in shipment, thus cheating the customer out of over $1000. THIS IS CRIMINAL.