He agreed to a deal with a seller and once escrow was setup he backed out of the deal. This is a sign that he was trying to avoid using escrow and only agreed to accept escrow to avoid setting off any red flags to others. Despite this being a bad idea, often times people will simply agree to trade without escrow if one does not respond and setup escrow quickly enough.
A neutral rating is more appropriate then, since no coins were lost and no scam was attempted. People are allowed to back out of deals. You should put in the rating your belief it's a sign he was trying to avoid escrow.
The scam that was attempted was that he tried to scam the bitcointalk account from the seller. The reason given in this thread was something along the lines that he did not trust me, however that is contradictory to the fact that he asked me to escrow for him.
The note in my rating does give facts that would make a reasonable person believe he was trying to avoid escrow.
IMO once escrow is setup for a deal it should be pretty much set in stone. As if you are selling something the seller may send what is being sold right away assuming that the escrow is going to be funded (this has happened a number of times if you look at various escrowers' sent negative ratings). The only real reason to back out of a deal once escrow is setup is because of some significant change in circumstances, for example didn't receive money you were expecting, and canceling a deal should be mutually agreed to, meaning both parties agree.
@bold: If that's the case, then probably I wouldn't use you as an escrow. If I am not comfortable with the attitude of the buyer/seller or the attitude of the escrow, I am free to cancel the transaction. Also, if I find another buyer who doesn't want to use an escrow and is willing to go first, paying me a higher amount which can earn me profit and I will pay him after his payment is received, why should I use an escrow and pay his fees? Why shouldn't I go for a deal that would save me from paying the escrow fee? I can also choose another person as an escrow. It's my wish and I don't get your logic.
Set as stone is as if I/any other member is obliged to completing a deal with you no matter if he is happy with your terms or not. You are talking as if you are the boss and the buyer/seller are your slaves and have to listen to you. I have cancelled real deals as well where I needed to rent an apartment and after setting the terms with the broker, I cancelled it as the buyer was a nuisance. Doesn't mean I wanted to scam him.
Today my one deal got cancelled after setting up an escrow and the other party backed out. That dint make me feel to leave him a negative feedback. He just wasn't happy with the terms. Fortunately, my other deal went through with an escrow. Any deal can be cancelled any time but that doesn't mean that it was cancelled due to the buyer/seller wanting to scam a person. A person uses an escrow to protect himself from being scammed and not to be gifted with a negative feedback if he doesn't use the escrow services after agreeing to the terms.