Fraud? - seems a little strong
 

More like mistake or worst, incompetence?
I got mine back though, and the sim is unlocked too, so I can use T-Mobile for data plan.
Mine is old, and battery isnt great, but Apple will replace the battery for $100.
I think its still a good deal for a cellular iPad2.

If you go onto eBay you can get battery kits that come with all the mini tools etc you need to replace it. You can also get a larger capacity than standard Apple For a lot cheaper than $100