I'd suggest preparing a contract next time you go and give a complete stranger hundreds of dollars over the internet. Also, if you payed via paypal, copy the receipt and contact your local Police Department ( Online Fraud Department ). Stealing
is against the law you know

I've noticed that alot of people are being ripped off by alot of designers, you need to pay in a method which results in some kind of proof of cash transaction, but a contract is probably the first step to big deals. I wouldn't advise anybody who is to eager to spend his/her money to purcase services online or you're going to be screwed & taken advantage of. My advice is to be more aware of the possibilities that you'll be ripped off, and prepare yourself for those possibilities in every way possible, don't be to quick to give up your cash, research the credibility of the guy
before you give him money which was your mistake.
I am sorry to hear about it all, I hope you get your money back along with everybody else.