Ian, you know my thoughts on this, but posting to show my support.
As far as outing the guy, I wouldn't normally recommend it as it just leads to a lot of drama, but your bases are covered and this is a significant issue - possibly the worst I've seen on an internet forum transaction. I don't think he realizes how well-respected you are, and that you are one of the least-likely people to start a thread like this, meaning it's a big deal and thread-worthy by anyone's standards.
Personally, at this point I would fry him alive.
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