Paypal Identity theft paypal bad customer service , Internet

I discovered over a month ago that paypal let my ex-live-in-bf open up an account under my ssn for his business which is long closed, connect it to a bank account not in my name, and get a -$850 balance.  After contacting paypal first they said they would do an investigation and a few days later came back to me saying that since I lived with the guy I must have given him permission to do it.  The police told me basically the same thing, and that I was better taking him to small claims court to get the balance since I can connect it to his business, but cannot prove I did not give him permission to open it.  I got a hold of the ex by e-mail and he said basically tough, I deserve it.

I do not have the money to pursue with a lawyer (I'm still getting back on my feet from leaving the abusive ex), but got one to work on my budget if I did most of the work of gathering information.  Here's where paypal failed the most.  I was told that I cannot have any records of the account they are claiming I owe the money on because they will only e-mail then to the e-mail address associated with the account and even request by letter will not work.  Even when pointing out that they let all this happen with out so much process or proof of identity.  Basically their lack in security measures caused this to happen, and now they are actively against helping me fix it.