Well, according to Paypal.
Their staff gave me two different stories.
1. We will go after, and prosecute this person ourselves, and take the money that we fine him for and return what he took from you to your paypal account.
2. We will go after, and prosecute this person yourself, we don't know about you, but you're screwed. We'll let you know this persons information so you can press charges against him, once you file with the IFCC and the FBI.
Basically I pretty much knew it would end up as number 2. The sad fucking part of this whole ordeal is the fact that Paypal is a MEMBER OF THE BETTER BUSINESSES BUREAU!