If you have his address, then there's a bit of a middle ground option.
To avoid stirring up BS that will possibly come back to bite you in the ass, wait a bit and then send him an anonymous (no return address, etc.) money order (in whatever amount you feel is warranted) with a note explaining you got an item from him that you feel was well undervalued, so you wanted to do the right thing and give him a little more money.
Sure, you'd probably have to do a bit of research to see if he sells many items for $250 or more, so it wouldn't point to you as being the obvious 'gifter,' but in the end you may feel a little better about the situation.
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