How do I activate used IPhone

I bought a used IPhone, and went to the AT&T store, as instructed, and obtained a new SIM Card. I am an existing AT&T customer. But when I put the new SIM Card in, and try to activate the phone via ITunes, I do not receive any activation screens. ITunes shows up with all the previous owners information (name, phone, etc).
How do I get the phone activated under my existing plan with my existing # when ITunes does not seem to recognize that it is a new SIM?

i found that i had horrable coverage with tmobile and what i did was changed my address to say a friend or family members location that i knew i did not have tmobile coverage and they let me out of my contract since i "moved" to a new location where i did not have service

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