Joseph Chinnock internet scam, paypal scam, credit card fraud. Boulder, Colorado

On July 19, 2011 Joseph Chinnok, who runs a business called A Writers Collective, contacted my graphic design company, Caligraphics, with a request to design 2 very simple ebook covers, just text with a plain colored background, a job that any amateur graphic designer could do in 5 minutes.  The covers were designed and emailed to him and he approved them and paid $60 with PayPal. On Aug 31 he started a chargeback on PayPal, claiming unauthorized use of his credit card, and PayPal debited my account $60 plus $20 for the fee to them from the credit card company. Now my company can't accept payment from clients through PayPal unless I pay them the $80. I don't know why he would do this, unless he's aware
of PayPal's policy of not extending any sellers' protection to digital goods - ebook covers, in my case - and he's just using that loophole to get his money back on design jobs.

When I emailed Chinnock about the chargeback he responded thusly:

 "My former partner challenged a bunch of charges. I fired him and no longer work with the bank. What do you need from me to reverse those disputes?

J"

"Cal, I'm cut off from the bank and don't use PAypal anymore. Please forward them my email informing them I had no intention of disputing those funds.

Thanks,

Joseph Chinnock"

It seems not enough is being done about Joseph Chinnock and his scams. 

Sadly, I fell victim against this Joseph Chinnock.