Well, it is great when you find things out!!! Seems like the guy that sold me the 427 and sent a 70 402 was arrested recently by the Bellingham (WA) police department. It seems that he has a history of doing this. The last time (before me) he tangled with a senator from Michigan, and was arrested for it. He is a 24 year old college student.
It seems that his dad is a lawyer, who reportedly sued the police department after the arrest. Boy were they glad to hear from me! He aviods neg feedback by cancelling auctions early on those he is going to screw, comes up with a lame excuse, and then offers to sell you the engine anyway. Once you get screwed, you cannot leave him negative feedback. He maintains 100% positive feedback by selling a good engine cheap every once in a while.
Now that I found him out, he wants to "work something out", but has used all the money I sent him. I gave him 24 hrs.
I am going to post how the scam works under the main discussion so no one else gets screwed.