However, be aware I asked him, "if i buy 10 used phones from 10 different people, and you tell me the MEID's are "clean", 12 months later all ten of those could be deactivated for the prior owner's being on a "bad" list and I would have no recourse?"
The answer: "Yes".
I haven't had a problem so far, but I was basically told the same thing when specifically asked about a phone being reported lost/stolen after a sale. The bad ESN list is checked only at the time of activation. So if you buy a used phone and activate it during the sale, the seller can immediately afterwards report the phone lost/stolen, and you will never know unless you deactivate and attempt to reactivate the phone.
It's a poor system to say the least, but Verizon has no incentive to change it, as anything they do to make the used phone market safer only cuts into sales of new phones.