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@Scilly.Suffolk
Yeah, I shouldn't be too smug: I make that decision from time to time. Even if the seller is sound it's still risky: the "knocked down by a bus" scenario doesn't respect honesty.
If I remember correctly, the last hoo-ha had a happy ending: check the Bad Traders thread, it was last year. The fact he returned under an alias doesn't look good though.
I don't think you can do much if the transfer itself was "technically" correct, ie not the wrong a/c number etc.