Customer Service Issues - The inappropriate behavior by customer service personnel

Problem:

I sold a vintage item to this antique dealer, the item was part of my relatives estate . The dealer complained that it was broken when it arrived and wanted a refund. We gave her a refund. We refunded her. She then listed online the item through Etsy.com that she said that the entire piece came smashed to pieces, those are her words. We contacted her after we found out she was selling the piece and that she had the condition was "lovely in excellent condition", within seconds she removed the piece from Etsy.com but we had alredy printed it out. She claimed she glued it back together, it clearly shows the item not glued back together. She has now a day later also listed te item on her personal website after we called and she is now claiming that the cherubs were broken off in her description . She also was very rude when we told her we were filing complaints and possibly calling the police she said go ahead they are not going to arrest for $10.00. It is not the $10.00 it is fraud. In a nutshell this business owner is buying merchandise from individuals like myself and then claiming it is broken in order to get e refund. She was arrogant, rude and belingerent. This is a dishonest and despicable act.