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@ziska
I suggest you contact PP again and advise that you are going to report the theft to the police. Get as much info from PP as as possible to pass over (guaranteed they have had to deal with situations like this before and have procedures in place).
Let the twat know you've reported him to the police. and even if your wheel is not recovered he's ( Russel Kay?) on their files.
It sounds all long winded but honestly he should not be allowed get away with this. He's gonna get cocky and rip more people off.
MV ^ A) he doesn't need to meet him. PP/Bank Transfer blah blah blah