While inability to deliver (as if the goods were out of stock) or failure to deliver (as if the company filed for bankruptcy) is not a crime, if it was the intent of the "seller" not to deliver, that would be fraud, which is illegal, even in California.
It could be both a state crime (larcency) and a federal crime (wire fraud). But you also want the money back. To say you should have checked who you were dealing with first is to retate the obvious.
You may want to write to the Better Business Bureau and ask if they have a record of complaints against the merchant. And if you suspect fraud, contact the California State Attorney General's Office, the County Attorney in the county where the business operates, the US POstal Inspector, and/or the FBI.
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