And by the way, just to add on to my earlier post:
I'm also a member of SquareTrade, and to be quite honest with you SquareTrade pretty much does nothing. They do require new members to go through address verification at sign up though, but when sales are performed off site, there essentially is no official record of the sale, apart from your funds leaving your bank account and entering his.
Simply put, it is your word against his. He can simply claim "Oh, ----Bowie---- paid me $1600 for an hour of chatting with me over the phone", and essentially there is nothing very little you can do about it, apart from perhaps filing a lawsuit against him and getting subpeonas for a whole load of information from eBay and Squaretrade before even naming him as a defendent. Extra bonus points if the perp is from a different state!
What that fella is trying to do is to lure newbies into trusting him to trade offsite by means of Squaretrade. Newbies need to know that trading offsite has absolutely nothing to do with Squaretrade. Squaretrade really all boils down to feedback mediation services, and with no eBay transaction there is obviously no eBay feedback.