Ok, I have a small Fraud Problem on my Hands ...?

I had something similar happen to me. Just ignore him. Do not respond to ANY of his emails, but save his in case you need them in future...or better yet print copies and bring to the police dept. He is full of sh*t. I would cut off all contact with him though..plus the more contact you have with him the more likely he will be able to hack into your computer.