Wow, this is the first chance I've had to read this entire thread (where have I been all this time!!!) What a nightmare. I'm glad you finally got some resolution, but I think you've been very gracious and generous in protecting this person. While the last thing you'd want on top of all this is any more hassle from this person (in terms of possible legal repercussions) there must be a way of reporting this as an Internet scam so others don't get caught in this same trap with this same person.
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When you don't like a thing, change it.
If you can't change it, change the way you think about it.

(Maya Angelou)