The tracking number showed the item delivered to the person, signed for with an known employee's name. I submitted this, as well as a picture of the item in the guy's shop. I still lost the chargeback. Got my revenge in the end though...see below.
A tip for anyone that's has a particular chargeback where they know they were screwed. If the issuing bank has any presence in your state...sue the cardholder's bank (or perhaps Visa/MC/AMEX) in small claims. In my case, Chase settled for the amount I sued for, which I made sure was on the high side. They don't like to spend money on corporate lawyers going to small claims.
Some people just seemingly think of creative ways to screw other people for fun, or because they figure no one will stop them.
Thought it worth mentioning though, because in the CC world, a lot of the fraud is return fraud. Like "Item Not Received" or "Not as Described" being used when they aren't true.