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They can't really do anything since if you close the accout meanning paypal can't really do anything to you because even if he does report you, you he also breaking a law selling accounts online. after you close the account, paypal has nothing to do with you anymore. and i doubt they would go thru alll that trouble just to get you. paypal is getting popular and bigger now because of WoW trade/sell sites. They have lots of other people to take care of.
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LMAO dude... there is no LAW against selling wow accounts, the law can't do anything at all to you for it. Only thing that can happen is blizzard ban accounts on your ip if they find your ip, thats it.
IMO i would trade sending the IRL ban hammer to someone and getting my money back for wow...