what to do when after the auction ends, seller says don't pay item is stolen

After winning an auction, eBay item number: 122417134448, the Seller contacts me saying item is stolen do not pay.

 

They do not respond to my futher communications for evidence of item existence via a police report. Item retails @ $1300 AUD.

 

I think seller did not in fact have item. Photos were not of item. Past feedback of seller, as a buyer, is they do not pay or reply.

 

I have left negative feedback.

 

Have I done the right thing.

 

Regards

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