This is a very kind gesture on your part...., but,....
Mr Kretchmar gave the medal away - this indicates that it had little interest to him - certainly at the time.
The young relative sold it - this indicates that the recipient had little interest in it.
You are free to spend your money any way you wish and you are free to make a gift of the medal to anyone you want but I wonder if this is best use of your resources. The medal is not reported stolen and is now freely, and without encumbrance, in the collector's domain. Some collector will buy this and it will add to the greater knowledge and wisdom of the collector community. From a quick look at the British Medal Forum http://www.britishmedalforum.com
) you will see that medal collectors honour recipients through the thorough research of their lives, their military service and, sometimes, their ultimate sacrifice.
Rather than return this, at your expense, to an environment where there is little interest in the medal, let it stay in the wider collector community where it will be better respected.