Update:
I just received this message from paypal...
"We have concluded our investigation into your case and have decided in your
favor.
We were able to recover $354.99 USD and this amount has been credited to
you. Please allow five business days for this adjustment to be posted.
If you are due any additional funds, we will make our best effort to
recover the balance from the seller.
If the seller's account has insufficient funds to complete the refund owed
to you, please be assured that we will take appropriate action against the
seller's account, which may include limitation of the seller's account
privileges."
What Im not clear on here, is if they do hold funds on new accounts, and those with 0 feedback, then the money should have never been sent to the seller in the first place. Especially since it was over $250.00. From what I was told, that was sort of the magic number for this sort of investigation.
I have also been contacted via email twice by the folks at ic3.gov, letting me know that their investigation is on going.
Just wanted to give everyone an FYI. I know several of us have vested interest in these issues.
Thanks.