Can't setup an icloud account on new iphone. Getting error code 403

My wife got a new galaxy and gave me her iPhone 4. I tried to setup my icloud account using my Apple ID and I keep getting an error message 403. Verizon said I may have to remove her account from the iPhone but have been unable to do that either. She tried going to icloud and it says server not supported. Why is this so complicated? When she reset the phone and I activated it nothing ever came up about this.

That's called activation lock. http://support.apple.com/kb/PH13695
Contact whoever you bought it from. If the original owner won't or can't release the lock, it's useless. Get your money back if that's the case. If they won't give you your money back, and you have no recourse (e.g. you could file a claim with ebay if it was misrepresented), then turn it over to the police.
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