eBay & PayPal Being sold counterfeit goods and eBay will not honor a claim and allows the seller to continue San Jose, California

I received the goods on 08/20/2012 from an eBay approved seller megabyte500 eBay item number 261081391958 and mail them back out on the same day back to the seller which cost an extra $21.74 to do so as they were counterfeit.  The tracking details of USPS LC564683796US show that the package left Los Angeles on 08/23/2012 and the seller did not provide a refund.  On 09/15/2012 I submitted a claim to eBay and they denied the claim on 09/16/2012. 

On 09/17/2012 I submitted a fax to eBay to appeal that cost an additional $12.60 to do so from my local UPS store.  I am out of pocket for $408.79 plus interest.  I spoke with eBay on 09/21/2012 and they are going to deny the appeal even though I have provided documentary evidence to support I was sold counterfeit goods including an email from Omega servicers

confirming that the item was a counterfeit.  So, there is no eBay protection for being sold counterfeit goods and eBay have not taken any action against the seller for doing so.   I tried submitting a claim through PayPal and as I had already opened a case via eBay, which PayPal is owned by them, I was not allowed to. I have now submitted a claim to my credit card company who provide Paypal with the funds to purcahse the goods.