The ***** who gifted something which he should have suspected had something to do with with colleague's eBay account is in the wrong, IMO. Sure, you should have checked your PayPal address, but that changes nothing in terms of the way this guy acted.

I'd be demanding either he hand me the toys in the condition of the eBay listings, or the cost of the toys + postage. I find it incredibly unlikely that he somehow honestly thought the world is that nice to send him free toys & would not be giving benefit of the doubt.