thats a crock. its not illegal and there is an entire thread about it here, good sir.
http://forum.ppcgeeks.com/cdma-tp2-u...-unlocker.html
to the op, the sim unlocker is single use. if you replace the phone, you either have to get ahold of htc-unlocks (impossible) via the ticket system, or just pay again. to be clear, you have a verizon phone and want to unlock it for rom flashing, or sim unlock to put it on a different carrier? the hspl for rom flashing is only 6 bucks, and well worth it. also, try posting this in whitchever specific unlocker thread you want in the upgrades section. although cmonex never responds here, there are a host of good people answering questions over there.
my personal experince with hspl and sim unlocking are as follows. ive never paid for a hspl (basic unlock) and ive done it 3 times. ive used the sim unlocker once. when i paid for it (22 dollars us) i never received the email with the .exe. i entered the ticket system and got an auto reply instantly that had a faq and a link that let me finish the transaction. smooth as butter.