The way to resolve this issue is to restore the phone. Now if you do not have a back up in iCloud or iTunes you will lose your content. If you backed up after the passcode lock was set up on the phone, you will have to choose to set up as new and lose all your content. Now iTunes will state that it cannot recognize or restore the phone as it has a passcode lock on it.
1)In order to get past this you will hold down the home and power buttons down at the same time.
2)When the apple symbol comes up on the device you will release only the power button.
3)Next an iTunes symbol, arrow, and usb cord will show up on the phone. At this time release the home button. 4)iTunes on your computer will prompt you with a message stating "iTunes has detected an "device" in recovery mode." You will click okay and then restore the phone.
5)Allow the download to process, times will vary.
6)Upon completion, go through the set up on the phone and pay close attention to the pages that you are on.
7)There will be a page prompting you to put in a passcode. You will have the option to skip it if you do not want it on your device.
8) And finally, I have spoken with James and these are the steps to resolve the issue. Please do not call him as currently he is being overwhelmed with calls and stated that he cannot take calls from customers that he has not worked with already. Please feel free to send me any questions you have as I will also be able to provide you steps to resolve your issue.