Is Michael Clemente a member? If he is not, then it won't do you much good because non-members are not held by the code of ethics.

Sounds like you have done the right thing by filing a claim with PayPal so I would make sure you've got all your ducks in a row when they finally get around to dealing with your claim. It is frustrating I am sure but it sounds to me like that is your best bet for resolution of this problem.

Best of luck to you!
Bill