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@El_Diablo
um thinking you need to a) do a legal research as I said b) start chasing him down for a refund- what he's using is "attack is the best form of defence" as a bullying tactic.
You've been sold a dangerous bike- you want your money back for the frame, and you wan it now.
I don't think he'd like the law on his tail again if you can get to that point.
Re bad publicity- you have the bad publicity to show of what he sold you. As to making you leave where you work through "alleged bad publicity" - only your boss can make that happen and is not going to as he witnessed the sale and what was said about the "crease"in the tube.
You need to be strong and fight him- he may have been a mate but he's shit on you and is now bullying you.