May I offer another take:
I didn't have time to watch the entire video, but I think I picked up the salient points.
Is it at all possible the seller didn't intentionally 'scam' Ray? In other words, did the seller know it was a gutted loco that didn't run? I'm not trying to absolve the seller in any way. I've seen in other shows meets, for musical gear, where a seller will buy items for the purpose of selling at a show, and not know something was amiss. For example, a guitar cab loaded with the wrong speakers. SO they unwittingly sell something that is not what it appears to be..
Anyway, I hope Ray can get some answers.