There is a lot more to running a seed business than just putting them in an envelope and mailing them out. Most people that have never owned a business have no idea how much work goes into it. Many business owners spend 60-80 hrs a week at their job. It is more than full time when you are running the company.
You have to pay bills, place orders, ship the orders, deal with shitty employees, take inventory, etc, etc. He may not be out of the product, maybe just behind. But if he were out of stock on things, it would be nice for him to let you know. I have been bitching about his customer service for the past 3yrs since I never got my seeds from him nor did I get a return email when I tried contacting him. So customer service is not his expertise.
Think about if you had millions of people shopping at your store. Its very easy to get overwhelmed. With all the emails he gets per day, it is probably tough to reply to every single one. And on top of that, getting out all the orders and running a business, its a lot to do.
Who knows, he may just be ripping people off until his business is affected by word of mouth. Or maybe its a crappy employee or he's just way behind. I don't think we will ever know exactly what is going on, but I don't think anyone should go placing huge orders of $1,000 or even $250-$500 at any seed bank if they are in the US. Its kind of just asking for it in my opinion. Most drug dealers are not exactly the most trustworthy people. And granted these people are not "drug dealers" so to speak, but when dealing with something like this, you have to look at them like that. They are not your friend and could care less what happens to you or your money.