[WA] I might have bought something that was reported lost/stolen, what's my legal recourse to negotiate with the seller?

Repost as the first one sounded like I was trying to sell something reported lost. Anyway this is what happened: Recently I "won" a lot of four iphones at an auction. After I submitted my bid I realized the phones were salvage which make them useless for me. My first thought was to not pay for the lot and walk away. However, once I read the terms of the site (this all happened online btw) I read that by bidding I was entering into a contract and was pretty much forced to pay or else face the consequences which are to be charged a fee of about the amount of the item in question. Accepting my mistake I had no other option but to pay (that and the fact that they already had my CC#). Anyhow, the phones arrived in the mail on Friday. As soon as I opened the package I noticed the phones were in bad shape. Reading the description of the lot the seller defines salvage as "an item that can only be used for parts". I'm going to get to the point now. I checked the IMEI # of one of the phones and it is icloud locked, this tells me either the phone was reported lost or stolen. If the phone was stolen I'm thinking that should give me leverage to ask for a refund as they sold me a hot item which is a crime. Now, can I use the same approach if the phone was reported lost? I'm thinking about asking them to unlock the phone so I can use it. Because I'm 99% sure they're going to say they can't that the phones "are to be used for parts", I'm going to use an analogy of buying a car. If you have a good chassis you can restore that car and use it but if you get a stolen chassis then you were defrauded and if you try to resell it then you're also breaking the law. Any thoughts, input on how to negotiate with the seller will be greatly appreciated. Thanks! The seller is located in IL.