Can a stolen iPhone purchased from a police auction be reactivated? Verizon says no?

I purchased a Verizon iPhone 4 from Propertyroom.com, an online auction featuring items from police departments. Was told by Verizon this phone was blocked due to its being lost or stolen. Coming from a police department that was no surprise, but I assume that being a 3rd party purchaser from the police would legitimize the purchase. I know the website says it is the buyers responsibility to find out if the phone can be reactivated. There are dozens sold each day through this website at pretty high prices. Has anyone purchased a "stolen" phone from this site and was able to get it reactivated?

Look, I work in security. We get phones turned into Lost and Found every day. We place a call to the wireless company (Verizon, AT&T, etc) and give them the ESN (it's under the battery.) They usually are able to contact the owner and get them reunited with the phone. So, If I can do that, why can't the police? I mean they could just drop all the phones off at the respective wireless company's store. So why do you think that this web site is legit?

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