Secondhand Iphone 4s won't work, is it black listed?

We brought it from Amazon from a seller with a good reputation. But i feel now we have been ripped off, they said it wa unlocked to Virgin, Orange and vodaphone, but it doesn't work on Virgin or Vodaphone. We took it too one of the shops that unlock phones and he said it was blocked becase of an insurance claim. The seller said he doesn't understand, so now thinking we have be scammed.
as anyone got any ideas to help.

Only way to figure out is call thee phone company and run a check on the ESN

Sounds like its blacklisted on all carrier.
email me and ill look it up