All due respect do you honestly think I bought it not knowing it had a bad imei? Lol. I called the number into Verizon and the rep told me it was clear for activation. Got home and went to activate the phone on my day off 2 days later and they told me in store it had been reported lost. Described my situation and they told me there was nothing they can do. All they said was next time meet at a VZW store and complete the transaction after activating the phone. I am not familiar with any of the things you mentioned.... Could you elaborate more? Feel free to pm me if you would like
Another option would be selling it as "bad esn" on ebay/whatever. You should be able to get most of the cost of buying a clean one on swappa, for example see this recently sold listing with bad esn for $280: http://www.ebay.com/itm/380877678421
Swappa: Mint condition, clean ESN (swappa checks), paypal buyer protection, $295: http://swappa.com/listing/XFQ276/view
If the phone you have was stolen (or reported as such), then you won't be able to activate it without changing the ESN/IMEI. You'd still need a similar phone with a clean ESN (working or not) to use to replace the bad ESN.
I'm not sure on the legality of that, but I am sure that it is not allowed to provide instructions on this forum for doing it.
In addition, if you don't know what you're doing you can easily hard-brick the phone with the tools you'd need to use -- meaning you wouldn't be able to recover most of your money by selling as "bad esn", because it would effectively be a paperweight.
I don't recommend continuing with what you're trying to do.