How about posting the original ebay add - take a few screen captures so the statements made in the add are clear and then some post pictures or other evidence that illustrates why it was miss-described. That way members can look and draw their own conclusions. This forum could be valuable resource in warning people about shonky dealers. particularly if it the dealer is a serial offender.
The site guidelines already prevent personal attacks and slurs, so moderate on the basis of sticking to observation and facts - not on the basis of avoiding controversy or upsetting dealers.
For procedural fairness email the dealer in question - using an anonymous email address from the aussiepinball.com domain saying a thread has come up on this forum which mentions you - you may care to respond. Make him aware there are 500 or so members who would probably be interested to hear his side of the story if they'd care to present it. I'm not being a smart arse, give them the right to reply and to state their side of a story in the same non personal rational way. Give the dealer free access and right to reply to the particular thread without having to join the site. What they choose to do is up to them.