Marcus (Xerico), I had to edit my original post that you quoted, so could you please update it accordingly (I don't want to be responsible for wasting anyone's time) - thanks:
EDIT: It looks like the first person I spoke to at PayPal gave me a false sense of hope. After calling PayPal back again & speaking to a different Claims rep, they told me that we would need to go through police, small claims court, or another source outside of PayPal. They did tell me that Skit-B's PayPal account was shut down some time ago due to the amount of complaints stemming from it. That partly explains why we haven't been able to get refunds over the last few months.