I've reported her to ebay over it all. they aren't interested.
As for going to the police - well, as it stands it's just harassment, intimidation, trying to obtain money by (something) - tbh honest it's all stuff I can deal with - even the court - although it's going to take up time, there really isn't a case (but who knows) I just can't bring myself to go to the police and tell them that a 76 year old woman is bullying me!!! How do I know she's 76? I know a lot about her now - if you dig deep enough you find a lot of dirt :)
I am intrigued though - she is definitely hiding 'something' and has been for a long time. John Smith didn't just appear for the purpose of intimidating me. So why does she have him? and how long has she had him?