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Sorry but report him for what? You sent a gift payment to someone and you can't really prove it was for anything else so unfortunately its unlikely paypal will take action.
You were the one that chose to send the payment that way after all, if he was not a mate or family member why would you do that??
But try if you want to >> click on contact bottom of every paypal page.
I think he completely understand that now but he just wants to report the person. I'm sure you can do that if you have a way to speak with their fraud que
I understand yours and his pov but there is no proof that the payment was sent for goods and services so paypal could not act against him.
If it wasn't linked to an auction or marked as goods and services then in paypal eyes it was not a sale and he has not been scammed.