Free iPhone without contract?

I currently buy and sell phones on craigslist. Recently, a seller of phones contacted me asking if i wanted to buy 3 Brand New iPhone 4 devices for only $130 without a contract. I have bought from them one other time and got the same deal. They were somehow able to get hold of new phones often, fast, and extremely cheep because they were sold to me for such a low price.

What exactly do they do to come across these phones? I think I heard that a sales rep or manager at a Carrier retail store may have the power to sell phones out of the store? Or they can order contract phones and then terminate the contract right after you got the new phone? I don't know if any of these are True but if you know how they come across these phones, I would love to hear the answer!
NOTE: the phones were not stolen, I checked the ESN's of each phone and I have never gotten a Bad ESN.

Those people steal the phones from pedestrians. Don't buy them it is bad. And you could get AIDS

  • Will buying an iphone in contract and unlocking cause contract immediate fee? If i buy a iphone for example on att contract and unlock it, will att charge me what's left on the contract or will i just go by like nothing happened and free of contract? I haven't seen this but it makes quite a bit of sense for companies… Not sure if they do however.
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