Nice portifolio and good reviews is not always trustworthy

This is a great story told exactly how it happened, You WONT BELIEVE this, ENJOY reading!

I was looking for a web designer to design my upcoming Penny Auction website. While searching the internet i came across this guy from India with the following Scriptlance portifolio.

Since i was not a member of this Scriptlance.com site, i googled up his website, and e-mailed him with questions and also asked him about rates. He claim he had worked with several Penny Auction sites before and was well familiar with the script i was using (which was probably just ONE of his many lies during the whole time I TRIED to worked with whis guy).
I listed up what I needed, and he offered very affordable prices, and based on his portifolio I was convinced this guy could do a decent job with my project. We agreed pre-paying through paypal before each task.
Hes first task was to make a “coming soon” web page, and a company logo. He started with not doing anything at all with our work (probably working with other clients urgent projects I guess), and excuse him self with a story about hurting his leg and ended up in an hostpital with no way to communicate with me). Finally, after several days he submitted a “coming soon page” that was downloaded from google.com, and the logo also was a simple google image. I did not accept this, and told that we wanted a custom page, and how we needed it to look like. He agreed making a new custom site, based on our demands. When he started this it went pretty fast, but the problem was that he did not pay any attention to details himself. We had to comment after every revision about changes, even on pretty obvious details. But after about 4 revisions we realized this was the best it would get, so we accepted the work. Before starting on the “website template” we wanted him to do a pro facebook and twitterpage, and also integrate some links on our “coming soon” page. We agreed on the price, and I pre-paid him 100$ for this task. After about 2 weeks not hearing anything from him, I contacted him and asked for some result. And AGAIN he blamed sickness for the delay (he had probably not even started our work at this point). I now realized that I cannot trust this guy, and told him I think its probably best if we get someone else to do the next task which was the “website template” as we simply don’t have the time to wait several weeks on him to complete the whole project. I told him we needed more people engage on this projects. Now he got really stressed, and begged us to wait 1 more day as he really wanted to do the whole project. He told us that if we did not trust him he gladly refund us the 100$, and if he did not submitted the whole 100$ task within the end of the day, we could feel free to hire a new guy. What happened next was that he submitted 1 of 3 that night.