Plum says you're one of the good guys, so I'm gonna just suggest that you try to look at the big picture.
If it's true that you were able to pick up the full set of 4 wheels for $1G (that's what's been suggested so I don't know for sure) and you can actually have a local wheel repair shop take care of all the problems for another $160 (call it $200) so that the wheels are true and as good as new, you've managed to acquire a set for $1,200. THAT my friend is a GREAT deal!
No saying the seller isn't a thief...just that, in the end, things may not be nearly as bad as you're presently thinking.