Paypal has a dispute resolution function, use that. You should get your money refunded, and the seller may have their account suspended. As for your question, its both fraud in the state of Maryland as well as internet fraud, but proving it can be difficult, so dispute resolution is better.
The author is a Maryland attorney; however no answer given on Avvo is intended as legal advice or intended to create an attorney-client relationship. Dan's expertise lies in the electronic entertainment (video game) industry, as well as complex internet law issues, electronic free speech, entertainment law, copyright and trademark law, and computer fraud. He primarily represents game developers and founders of emergent internet technologies.
Begin your attempt at resolution within EBay and PayPal. If it is not resolved, report it to the local police. The feds usually look at only the larger issues.
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