No shock.
Although I would never condon the behavior, it doesn't suprise me, and should not shock anyone. With the amount of "real" crime in the world I would be more suprise if stuff like this did not happen.
Is someone who sells something like a printed/laminated/with badge clip ID on ebay being paid for the design or the work, or both? If the seller was to sell an ID staing that they didn't design the badge but you were paying for the printing, laminating, etc. would that make it better? I suppose not, I just never thought about it that way before. Although if they took something I gave for free, produced it, and finished it, then sold it, I could not really complain, as they did the work as well. It's just a bad partnership, but they did add something before selling. It's not like they are selling the jpg file and you have to print it yourself. I know that is a fine-line difference, but it does matter to me. I'm not saying it is right, just stating the thoughts I have had on the subject.
There are plenty of folks who would ather pay a few bucks even if they know the file was free just to avoid figuring out the best paper, having a good printer, and getting it right. (I still buy books even if I can legally download them for free, to avoid the hassle of printing myself) Heck I have saved every free paper prop I have ever found online, and printed only a handfull. In most cases I end up buying (others versions - not ripped off ones) of ID's and such just because I can't get them to print right (or 2 sided, or laminated, etc, etc). So there is a market - although ID's and such tend to be way over priced. Either kind folks give them away for free on threads like the one here on the RPF, or the make them for about 10 cents in bulk and charge $20 a peice.
I suppose all I can do is not overpay to the folks selling there own stuff, keep avoiding the re-selling of others work, and just keep downloading and storing them for printing 7 use later.