Not being a lawyer, I don't know what the penalty is for what his company does. I do know it is deceitful. His actions have been well documented here and on other sites. Easy enough to search for. Unfortunately the old saying "buyer beware" comes into play with many sellers. He is not the only one doing this, but probably the most recognized, using different names over the years.
Time passed, collecting took off, rare parts dried up, market desire, financial gain, the reasons for such actions goes on and on. If something appears too good to be true, price or stamping, research it first. It usually is.