IPhone 4s Stuck on startup at Icloud password?

So a family member of mine bought an iPhone 4s online and came to find out someone screwed it all up. I bought it for 20 bucks… Figured it couldn't hurt… It's stuck on the start up screen. Select language, country and Wi-Fi network. As soon as I set that up, it asks for an icloud account and there's no possibility of ever finding out what the account login is. I only want the phone to play with on Wi-Fi. I'm not looking to turn the phone on with service. I was wondering if there's any way possible of bypassing this or should I just throw it in the trash? Because I really won't try to re-sell it to pawn the problem off onto some1 else and its not gonna sit around and collect dust. I'll toss it. Just looking for opinions…

No way to connect it to my computer and wipe it clean or downgrade it to Ios 6 and start over?

and no it's not a stolen phone. I have no problem putting up the meid, phone number, and model/serial number online… Apple says there's nothing they can do for me, or so the "Online Chat" person said so…

It's black listed

First off, the phone can't be downgraded to iOS 6. Secondly the phone is toast. If you tried to pawn it you would get nothing, if you try to take it to a repair shop they could do something but it would be incredibly expensive. I could do it if you are willing to let me. If not, I understand and you are looking at a $100 problem.