I would suspect that the company doing the auction, "Clutter-to-Cash" is in fact unaware that the camera is a fake. These companies are like consignment shops - a person drops off their stuff along with a description and a minimum bid amount (if any) and the operator takes it from there; by which I mean that they take photos, create the listing, receive payment when the item sells, and box and ship the item to the buyer. For this, they take a fee. From the seller's viewpoint, this is nice in that they just drop off stuff they don't want anymore, and they get an eventual check from "Clutter-to-Cash." There are many such companies - including a nationwide chain called "ISOLDIT."
The problems you've all noted - the feedback you're seeing is for "Clutter-to-Cash," which has done a lot of auctions - they would, being a electronic consignment shop. But they do not actually own the merchandise, nor do they necessarily know any more about it than my next door neighbor would know about my lawnmower if I asked him to sell it for me at his garage sale.
So I seriously doubt that they know it is a 'fake'. They only know what the seller told them.
Generally, a company like this will quickly reverse a sale and accept a return if the item turns out to be fake, damaged, or misrepresented in any way - they don't want a beef with eBoy, that's their bread and butter, so they'll do what it takes to keep customers happy. However, in the case of low-dollar items, shipping is the bugaboo - the buyer does not get shipping refunded (generally) and that is often a good reason not to return a low-cost item.
So I would not say that this seller 'knows' that this is fake. I would not necessarily blame them for not knowing it was fake - they can't be experts in everything, any more than a pawnshop or second-hand store would know that a purse was a Prada ripoff or a camera was a Leica clone.
The owner of the camera most likely knows it is fake, but it is hard to be certain - could have been someone else who was taken in and has never been hipped to the fact that it is a Zorki. And don't be so sure that 'anyone' would instantly know it was not a Leica. Cornpone Jones, first time in the big city, buys a "Leica" on Canal street and returns home with it, where he puts it on a shelf and someday his kid sells it on eBay - happens all the time.
Sadly, there may be no blame here - and one must always Caveat Emptor - and be wary and do our own homework, as Walker has done for us here.
Thanks, Walker! Frankly, I would not have known, but tend to suspect all Leica LTM bodies and Contax II, III bodies. So far, I don't think there are Leica M or Contax IIa, IIIa fakes, though, are there?
Best Regards,
Bill Mattocks