Yep.. I'd have to say it sounds like a bogus deal and some effort should be made of some sort to correct it.
The junk parts should have been brought up when received.. So I can understand that part.. but.. the 4mil crank is a pretty big issue and not easily accessible for inspection. What if this engine was sold to a newb that didn't know how to split the motor and didn't know any better? would that guy just be SOL cuz he didn't know?
IMO... its a sour deal.