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...].

Two weeks ago, a company called Bladox, based in the Czech Republic, began selling an $80 device called a Turbo SIM. The thumbnail-size card, attached to another carrier’s SIM card and inserted into an iPhone, tricks the iPhone into thinking it is running on the AT&T network even when it is not.

Links:
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10

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.