Oh well, I went and did a police report and asked them what steps they would have me take. They told me to make a report with the federal trade commission and at least that way they could get the site taken down. If more people were scammed and are willing to report, PM me. The more people I can get to come forward the more serious they will take it. I'm also in the process of contacting his service provider and also payment provider to alert them of the scam, but that will have to wait until Monday.
You should of went to his profile and checked his trust feedbacks, you would of seen about 10 red messages saying he was not to be trusted. If you did not see him as red trust warning, it is because your trust setting are at depth 2, so only feedback from default trust are being counted.
Set it to depth 3 and you will see a more accurate reading on their trust.
But the trust rating does not mean anything anyways, you need to go read the feedbacks and see if the previous experience with this user warrant trusting him.
I think you, and i dont blame you per se, but people like you always get scammed from scammers because it has not been proven that the person is a scammer. Basically until they see red trust on their account. But trading with a red trust is the same as trusting with someone with no trust, 0/0. So trading with a 0/0 or someone not labeled red trust is a wrong approach.
The way reality work is "do not trust unless proven otherwise". You trust sellers on Ebay because Ebay guarantee your money. The same when you go to a store, or anything else. People are spoiled they don't even realize why they trust or do not trust something.
The gold world has and still is "Do not trust unless proven trustworthy."