Gary,
I appreciate the fact that you are giving the guy the benefit of the doubt. I think that is a common courtesy we should all express. Certainly we would all like that courtesy extended to us if the situation were reversed. If it is not resolved in some reasonable amount of time then making the matter public might help resolve the issue and will either mark the person "outed" as not suitable for transactions or exonerate him/her in the process.
My opinion is that "gifting" should be used as gifting only. Otherwise it is indeed gaming the system. When I have sellers ask me to do that, I politely say no. A business transaction is what it is. If it includes sales tax, so be it. If it includes a third party fee then so be it, or don't use the third party.