Warranty Replacement Swap

I recently bought a new phone.  Almost immediately had issues.  I completed a warranty replacement with no hiccups. The replacement device continued to give me the same issues. When I completed the return of the 2nd defective device, I got a notice from att and an Alcatel phone from 2013 in the mail telling me I returned the wrong device.  Told me kindly that I could keep both phones and a 1200 fine would be applied. Today they said  if I could provide pictures of me placing the device in the return box they could credit me. They didn't even want to consider that the pictures taken at their warehouse upon receiving my return were taken after they swapped the phones out. Why would I keep the device that I had been complaining about, knowing that I'd still be responsible for 1200 dollars? There was a story on my local fox News channel of the exact thing happening to them.