Used ipod 5 stuck on activation icloud lock

I bought a secondhand ipod touch 5 ios 7.0.4 cant get ahold of original owner apple is no help is there any way to get this working if this is not fixable then I am out some serious cash and not happy with apple or the aeller I bought this from is there anyway to look up the original owners contact info by serial number thanks 

Its really not Apple to blame. Its a security feature with ios 7. This is one of the things you should always check for when buying a device secondhand from a 3rd party.
You have to remember that everyone isnt honest out there and may intentionally try to sell a stolen device. Not saying that this is the case at all but this is one of the main reasons behind the activation lock. Think about it. If your iphone/ipod/ipad was stolen or lost, you would not want someone making a come up selling it for somebody else to use. If someone stole your car, would you mind if someone stole it, sold it and made money off your misfortune? lol
Only the original owner that set the device up can unlock this feature.
http://support.apple.com/kb/TS4515?viewlocale=en_US

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