This may be a perfect project for an ITPer. A 17-year-old discovers how to unlock the iphone, but takes soldering and programming in 10 steps [links below]. Reading the comments, most people seem to have gotten lost around step 5, but who knows, you might even discover a new and easier way to unlock it. Or you could buy a Turbo SIM for $80 [to read more...].
Or, you could just buy the iphone that he hacked from him, as he's having problems selling it on eBay, but that's a whole new other issue (eBay, I mean). I think he should sell it on Amazon Marketplace, and not worry about the hassles of fraud.