Blippin Nora! Looks like someone has had at it with a file, not a screwdriver. I think you might be better off with a new crown, steerer and uppers. Or walking. Removing material from the steerer is not a terribly good idea.
One thing – is that an aluminium or a steel steerer? It looks very shiny, so I'm guessing aluminium. Regardless, I'd not feel terribly confident or safe riding something like that.
Caveat emptor applies to second hand goods, but if it was described as in good condition or something similar, then you do have some rights. Have you talked to the seller?