A year back he did this to me(thread above) and even though i tried everything i never got back my money.
My only advice to people who have given him work is to make sure not to let the 45day paypal deadline to pass. Tim will sweet talk you a lot to ensure that the 45 days pass so that paypal claims can't be filed.
As far as vb.org goes, i wrote to the admins then and nothing was done about it. After all the position is that its our problem. I am fine with that but i am not fine with the fact that the same guy is allowed to continue to rip newer people off even when there have been instances of his doing so in the past. You can only see the kind of excuses he gave to me(i have posted them in the thread in my sig). Doing nothing about it and putting it squarely on the vbulletin owners is not a answer to anything.
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