Can google find my stolen phone?

I hope you are all aware of Google’s Device Manager Feature. You can access your device manager using this link. Device manager allows you to ring your phone, remotely wipe it, etc, etc. But what if someone steals your phone? The first thing that they will do with your phone is to wipe it and do a hard reset (unless they are interested in getting your data). Once a phone is reset google account in the phone also gets deleted and there’s no way that your Device Manager account can communicate with it.

Now here’s the tricky part, if anyone wants to use google services on your stolen phone then they have to sign in with their google account on phone and then google will store phone’s IMEI in that person’s google account. You will still be able to see your lost phone on your device manager but it will be offline. The person who stole the phone will definitely login to google services because in Android you can’t use play store without connecting your google account.

Now google can easily get the email of person who is using your account (if they want). Now I don’t understand why google is currently not doing this. Legal issues?