Could I keep the phone and still get a refund in this case?

I purchased a $420 iPhone 4 over the Internet with a bad ESN (stated in the description) and I'm okay with that. But than I asked the seller why it had a bad ESN and he told me that it was because the person that sold it to him had reported it stolen to get a new one and that's why it won't work on a GSM network and it's a CDMA phone or whatever it's spelled like. But didn't he technically sell me stolen property? Also, when he sent me the phone he sent it in an AT&T box but it's a Verizon phone and he stated that it came with all accessories and it turned out that the earphones he included were not the original ones that are Apple authentic. So would I be able to keep this phone and still get a refund for his misleading advertising and selling stolen stuff?