Used Ebay Iphone scam. What to do now?

I bought a Iphone 5 from ebay. The seller said it was bricked but that it would usable when the next jailbreak comes out. I just got the phone and it turns out its not bricked but locked to the ICloud of the previous owner, so I can't even activet nor go pass the activation screen. I asked the seller for the Apple ID and password but apparently he doesn't have either. I think this seller is a scam and this phone is stolen or something. The transaction was through paypal. What can I do to get my money back and return this most likely stolen phone?

You should try to file a refund on EBay and a transaction problem. Say that it is not what the seller described. Good luck and hopefully you get what you wanted. I bought an iPhone 5 of eBay too and next time don't just buy off anybody! Buy from sellers with a good feedback score