Suspected Fraud - Help!

[Cryogenesis]

Hi, I believe there's a fraudulent scheme ongoing concerning someone I know I want to know how it can be reported. I'll add in a few details for clarity.

I worked on a Shopify dropshipping store(from Aliexpress) as a joint venture with someone and we parted ways shortly after due to difference in approaches. He removed my login credentials from the store but I did not lose access to the backend because I was logged in on another browser. I still have access to the backend and I'm able to view Orders and Customer data. He does not know that I have access.

The reason I suspect fraud is:

1. He is marking ALL orders as SHIPPED in the backend without actually placing orders for them on Aliexpress. What you usually do to fulfill and order when comes in is, you go to Aliexpress and place the order for the product and then wait for the supplier to ship it and give you a tracking number. Once you get the tracking number, it is automatically synced with the order. Then, the customer is sent an email with their tracking number saying their order has been shipped. But, there is also an option to manually send the the email saying it has been shipped by just marking the product as "Shipped' in the backend. He has done this to ALL orders without any Aliexpress orders placed.
   
   
2. He is currently promoting a product below it's market price and makes a guaranteed loss on every order that he makes. I know this as a fact because I was the one who found suppliers for the product. He's promoting the product via Facebook Ads and is guaranteed to make a loss of $5-6 on every order that comes in and he's still promoting it. I found it very odd and asked him about it to which he said he found suppliers who offered him bulk discounts and he sends them order data through excel sheets. I asked him for the suppliers and he has stopped responding since. No supplier would EVER sell the product at the price he mentions because it would cause them huge losses. 
   A breakdown of the costs -
   Cost of buying product - $9-15
   Cost of purchase through Facebook Ads - $2
   PayPal fees - $1
   Price he's selling product at - $9.99
   
   He clearly makes a loss on every order that comes in, unless he decides not to fulfill them. I have checked everywhere possible and no supplier would go below $5 for the product. If he doesn't fulfill the orders i.e not place orders for them on Aliexpress (sending people the product) then he makes a profit of $7. So people are basically paying for orders they won't receive and the amount is so less that it probably won't matter to them. That's what I think he's though of. Only 6 orders out of over 130 have ever been actually fulfilled.
   
3. I've started emailing a few customers whose orders have been marked shipped and ALL of them so far have told me that they have not received any tracking number. I've also contacted a few old customers whose orders have been marked shipped but no tracking number added to confirm that they indeed are not receiving any product. If the product was sent to them, they would've received it by now. I'll add an update here when I receive replies from them.
   
   
4. He once joked about what would happen if we received 100 orders and didn't fulfill any. He joked that PayPal probably wouldn't do anything.

I don't know what else to do to bring this to Paypal's attention except writing a thread here. If someone from the PayPal team is reading this, please reach out to me so I can give you additional information on this. I have all sorts of proof to support my case.

Tl;dr: Old business partner seems to be taking money from people for products and is not actually sending them anything and may be committing fraud. He has racked up orders worth $2000 so far.