I lent my best friend something expensive once. No problems trusting her, but behind both our backs, her 16 year old son stole it, sold it and used the money for drugs and alcohol. He wasn't old enough to buy any of that, but just like your stepson, he found a "friend" to help him sell the item and buy the illegal things.
When my friend found out, of course, she was livid, embarrassed, hurt, sad... Her approach was one that I thought was really loving, tough, and lasting.
First, she took her son to a counselor. In this case, it was her pastor. (If she hadn't had a pastor or priest she would have gone to an adolescent-specialist psychologist). She sat there beside her son while her son told the pastor what he had done. The pastor helped him face his issues, and of course, I'm not sure what the pastor counseled him privately about (the drinking and the drugs - that was not my business, but she told me it was tough and fair and effective). However, as far as I was concerned, the pastor helped the boy write a letter to me, confessing what he had done, apologizing, and laying out a plan of accountability and repayment. The boy also told me about how he would be meeting with the pastor every week and that he would not miss a meeting or appointment. The boy paid his mom every two weeks from odd jobs, and she wrote me a check. The boy reported to the pastor every week and accounted for his whereabouts, his spending habits, his repayment status, and his behavior (with his mom fully aware of everything going on.) The pastor communicated with me and asked if I would write to the boy. I did, and forgave him, because it was just "stuff" (although I was honest and told him how sorry and hurt I was) and I value his mom's friendship more than anything. That letter was also read in the pastor's presence and discussed. The boy wrote me a reply which was so heartfelt and honest.
The boy did not get birthday gifts that year (his birthday was coming up), but his family and his pastor all took great care to remind him that he was loved, but he had violated their trust and had cost me a great deal of money. But he could earn it back. It would take time and effort. He did get a simple birthday cake, and his mom made his favorite meal on his birthday.
I liked how they handled it. They never made the boy feel like he was hopeless, or cast out. He knew exactly what had to be done to be trusted again.
That boy turned his life around. He has not had one problem with the law since. He stopped drinking and stealing. He knew his family would not abandon him, but neither would they make demands they weren't prepared to follow through with, and they would not let this serious action just slide by.
So I think that your husband's actions are appropriate, but I think you need an outside person (religious leader, psychologist, social worker, etc) to help keep the boy accountable and to realize how serious this is. But he also needs to realize that he is loved and that he can earn a good reputation back, and earn back trust, and become a person of integrity, and how invaluable that is. I do think he should get some simple gifts like a sweater, and some candy, maybe new gloves, etc. He needs to be reminded that he's part of the family and loved, while still realizing that he cost the family a lot of money and that there's restitution to be made. It's important not to rub it in (like after your younger son opens a gift, no one should say "oh, Tom, too bad you won't be getting any new video games this year"). Save the discussion about the crime for the sessions with the counselor or pastor or priest.