Are you effing kidding? YOU are the thief here Mike. YOU took money from people, FOR A PROFIT, and aren't giving it back. YOU are making threats against people for trying to recover their money that YOU collected. You are in completely over your head, you messed up, and now you're realizing that people are pissed. YOU are the one "stealing" money from buys.
Did you take money for a misrepresented good, and then not refund, while threatening that people wouldn't get refunds if they got the authorities involved? Yeah buddy, that's LITERALLY fraud.
At this point if people don't see the crap that you're pulling then they have their head willingly in the sand. If anyone orders from you from this point on they get what they deserve.
I think it's about time for a moderator to step in and lock your thread from new purchases here until this can be taken care of. This is getting absurd that they allow you to still deal on here, you clearly aren't doing just group buys anymore (you have an entire sales website), yet your pretending to operate like a "guy just doing a favor for people", which isn't what you're doing at this point.
It sounds like you were operating an illegal business with no insurance and no license, shipping things with improper labels, through a service that had no idea what they were shipping. You know better than to ask anyone to contact a shipper with something like that, it's a joke, stall tactic, and you know that it won't do anything.
I would suggest it this point that people lawyer up, call their credit card companies and PayPal, and if that doesn't work start getting the FTC involved, because Mike clearly can't do anything about this anymore, other than call customers thieves.