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If so, you might be able to push that issue. If it crosses state borders, this would probably qualify as a federal crime. Send any emails you have to PayPal and file a report with your local police department. From there, I don't really know what else you can do except make him nervous enough to retract his claim. As a last resort you could have a lawyer draft up a letter stating he will be taken to small claims court over the matter and that might wake him up a little. Good luck!
Mike
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