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Usually, the person who bought the phone did so at a discounted price from Verizon and did not pay their bill. Verizon is trying to get some of their investment back by locking the phone. It's a tough lesson to learn though. Unfortunately the responsibility falls back on you for not checking the ESN out before you bought it. Lots of people make that mistake. You may be able to sell it as a "bad ESN" phone, as many people will unlock it and use it for another provider.