Court is barely worth the expense to recover a loss of this amount. You need to gather all the info you can on this guy, especially find out his weekness's and personal enjoyment, pastimes, family. With that you can do something. If hes in the states and you are, then I believe (not 100% sure of US laws) you can press fraude charges. At least with that it will be easier to win a small claims suite against him. You can also contact ebay, paypal, escrow.com and several other places. Very important to get his personal information. You can even sell his debt or better than that, give it away. You can figure out the rest. All this said given he is guilty of what you say.