If you have the picture of the original cards + links to the new altered cards, it's best if you don't go through ebay reporting (as they don't care as long as it's making them money) and report him/her directly to the fbi (especially the guy in here who claimed he originally sold him that Jordan):
Internet Crime Complaint Center (IC3) | Home
If they get enough complaints, they will follow through and investigate, especially since this guy is a repeat offender and scamming for thousands. Definitely a felony offense, and the fbi is taking a newfound interest in cracking down on baseball card/memorabilia fraud now that it's such a big industry.
It's time we start cracking down on these jackasses destroying the hobby...they are getting too comfortable.