IPhone 4s not working (virgin mobile)?

I bought a virgin mobile iphone 4s from Ebay a week ago, i was just about to turn it on thru the activation process on virgin mobiles website and it says its already in USE. It shows a 951 number and i'm from the 760 area. The seller who sold me the phone had my IMEI on his/her website saying "CHECK IMEI BEFORE YOU BUY" and it had the number, i checked it was GOOD now i think someone stole my phones "identity" how can i fix this, virgin mobile said to return the phone but the seller refuses too

Nothing you can do, the iphone is now useless as a phone.
return it or enjoy your new ipod touch

Not sure if this is what happened, but you can sell a phone (like to you) then a week latter report it lost of stolen to get a replacement phone, if you had insurance.

Call V-M to be sure exactly what happened before you panic.

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