BEWARE OF FRAUD with this member

I think that everything that needs to be said has been said about this.
I just would like to add that I would think nothing of opening a small claim in your local jurisdiction against PayPal. First off, just for the ballbreaking of it all. Even if they dismiss it, PayPal has to pay $1,500 to get somebody to stand in there that day. Second, when you provide everything you've said in the original post, that comes across real well on an arbitrator or a judge. You will win your 500 bucks back and unfortunately you'll have to work for it, but I don't like getting schtooped on an order that got stolen in Southeast Asia by an organization (PayPal) that's handling business and making decisions from Southeast Asia. Even if I lose money I like to see them lose.

PS, PayPal does this to buyers as well. Had a Krell preamp, purchased here on A'gon, just not arrive at my doorstep while I was in the house. Despite the fact that the seller insured it and sent it 'signature only', UPS said they left it on the doorstep (again I was home and waiting for it) and despite getting police reports and neighbors video of my door that the police went over, PayPal still closed the case on me and I was out the preamp and the money. 
Luckily, a little while later my PayPal MasterCard was kind enough to find in my favor and I was no longer out the money. 

In May I bought a turntable off of Audiogon. Paypal provided me with a USPS tracking number. A few days later the USPS tracker showed me it was delivered to my front door.

Nope.

Contacted my local post office they tell me it the tracking number must be wrong because it involved a delivery to a different address in my town.

Reached out to seller via Audiogon and Paypal. No response. File a complaint with Audiigon and Paypal. I note that while the seller lists his address as new York, New York, the package was shipped from South Carolina.

Audiogon says gee, sorry, contact Paypal, and then immediately sends me a email survey on how well a job did they do in responding to me.  Well, not well at all to say the least.

Paypal denies my claim. Says the seller provided a legitimate tracking number. Go back to my post office. The postmaster looks things over and shows that the package was delivered to another address, but, here's the kicker, the package weighs 9 ounces.

Well guess what. The turntable weighs 22lbs!

Paypal throws in the towel and I get my money back.
It's a fairly creative scam, but yet another thing to watch out for when buying online.

Wouldn't Paypal "Friends and Family" remove the risk of this claw-back scam? The "Friends and Family" option removes the fees - as well as access to the Paypal dispute process that these scammers rely upon. Win-Win.

I think FF opens up a whole other can of worms. Wouldn’t it?