should i involve local authorities?

i just finished a bad trade, i gave them 1 month x box live code and they gave me a fake code for ms points, should i call, or just try to bring him to court to get him charged? this guy is already temporarily banned and he wants to still try to scam, he already used the code, what do i do? im so upset right now cuz that was the only live i had left and i cant afford anymore so now im left with nothing