Welcome to Android Central! If there's no option for Demo Mode in the system settings, then most likely this was a display model in a store, with a special demo ROM installed. I agree that this kind of situation might mean the phone was stolen from the store, but it's also possible that a store was just trying to unload its floor models without bothering to change it into a non-demo model.
You could try looking in the forums at XDA-Developers.com to see if there's a way to flash the stock ROM.