Wait, you paid with PayPal? Credit card, bank account? You should be able to reverse this. Service/product not provided. How did the scammer refute that?
So far PayPal has been totally supportive of this scammer. They are not even willing to register a dispute, which would be recorded in the scammer's register. They do not want to hear about returning the funds.
You are doing it the wrong way.
You need to ask to talk to a supervisor about this and you will get help belive me i know what i am talking about. The *normall* staff will not help you at all just ask to talk to a supervisor and do not let you disconnect by any excuses