Legal Question in Civil Rights Law in Maryland

I recently sold an iPad 2 on Craigslist for $450. I had received the iPad in November of this as an early Christmas gift from my husband. In the listing I stated that the iPad was "like new" and that it was used a few times. The iPad was barely used, only to surf the web here and there, but was barely used. There were not any scratches to the outer part of the iPad at all or to the screen. The person I sold it to met my husband, took the iPad out of the box, turned it on, played with it for a few minutes and then agreed to buy and gave my husband the money. 2 days later, I was contacted by the man saying the item had been "extensively" used (which it was not) and that he could go to Target and buy a brand new iPad for $50 more and that he wanted a refund. I had forgotten to completely erase the iPad therefore it had the internet usage on it still and he saw I had visited websites in my time of owning it. However, I had not used this iPad a lot at all since owning it myself. After going back and forth that it wasn't used "extensively" and that I told him the iPad was used and not brand new and I would not give a refund. He finally, contacted my husbands work, a military a base and my husbands Major on base, and complained about the situation that he wanted something done. They told him there was nothing they could do that this was a civil matter. He e-mailed me one last time last night saying that he was planning on suing us if we did not refund his money and that he would sue for court and legal fee's as well. He said that the iPad was fraudulent and he would not go away. He also said that we grossly misrepresented the item and that this could hold more severe federal punishment. I don't know what to do, if I should refund the guys money or not. He has had it for almost a month now and e-mailed me 2 days after having it. He realized he could buy a new one for $50 more than he paid and wished he would have. Help?

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