Complaint sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

I have a CITI AAdvantage American Airlines Platinum Select card since XX/XX/XXXX. While vacationing in XXXX, XXXX I purchased on XX/XX/XXXX from a supposedly reputable carpet store a genuine XXXX   handmade silk carpet, based on what the merchant claimed, for {$10000.00}. I received with the carpet an official written " Certificate of Authenticity and a Rug Description sheet '' attesting to the origin, quality, nature and the value of the carpet. I left XXXX to XXXX on XX/XX/XXXX.  I was shocked to find there that the carpet, was not a genuine Turkish hand made as claimed during the sale by the merchant. It was rather a cheap Made in XXXX imitation with value less than {$1000.00}. Since the store advertises on its web site " Satisfaction guaranteed or your money back '' I immediately called and emailed the merchant about my findings and requested authorization to return the carpet and get a refund. The salesman ignored my repeated questions about the authenticity of the carpet but stressed that it is against the store policy to accept returns or refunds but they will accept an exchange. ( Email enclosed ). To me an exchange was not a satisfactory option since I lost confidence in the store. I immediately called CITI credit card and reported the fraudulent sale and asked them to suspend payment to pressure the merchant to accept a Return/Refund. I also filed with CITI card onXX/XX/XXXX a written dispute claim. Citi card requested verification that the carpet is not genuine. I called the American embassy in XXXX for advice. They kindly gave me the names of some of the reputable Law firms for guidance. I was legally advised to get an indisputable formal legal statement from a court appointed carpet expert attesting to the nature, quality and origin of the carpet. I did and the written legal report verified that the carpet is a XXXX made imitation with a value of less than {$1000.00} ( Report enclosed ). I did send to CITI card a copy of the original court attested carpet evaluation report. Since the report was in a foreign language, I had it translated to XXXX by a court authorized translator and also sent the XXXX translated version to CITI card. CITI credit card later inquired whether any attempt was made to deliver the carpet to the merchant. I did attempt to deliver it before, and the merchant refused to take it back. CITI card already had written documentation around XX/XX/XXXX that I called and emailed the merchant requesting authorization to return/refund the carpet and the merchant written email refusal, I did abide by their request. I flew back to XXXX again with the carpet hoping to be able to return it. My lawyer in XXXX, advised me, for safety reason, to avoid any direct confrontation with the merchant and proposed that he perform the return/refund attempt. He did and the merchant again refused. Citi card was informed in writing of that. 
I complied with all Citi card demands and submitted evidence beyond doubt that the sale was fraudulent. I disputed the fraudulent sale and asked them to suspend payment to the merchant to force him to accept Return/Refund. CITI card company rejected my dispute and billed me for {$10000.00} on XX/XX/XXXX. Their excuse was The merchandise must have been returned to the merchant for credit. A return merchandise authorization ( RMA ) would have needed to be requested from the merchant in order to offer the merchandise back to them. This in unbelievable. If the CITI card investigators bothered to review the file in detail, they would have discovered that the merchant NEVER accepted to return the carpet. The merchants statement about the RMA is an excuse, since the carpet is with my lawyer in XXXX and he as well as myself tried to return it to the merchant without avail. Another statement in the CITI card verdict, We can not mandate the merchant to issue credit is a another non valid excuse. CITI credit card ignored the fact that they have all the power to force the merchant to accept return/refund. Just by threatening him to reject payment for a disputed fraudulent transaction based on their deceptive practices. Merchants like this should not be allowed to prey on Americans, and when they do, credit card companies such as Citi card should protect their customers. I have spent so much time and money in order to prove unequivocally that this merchant has engaged in fraudulent practices. He should not be allowed to get away with it, since he will now most likely prey on others. I checked his web review site and unfortunately similar incident was reported by a fellow American. 

I to regret to say Citi card billled me for the {$10000.00} and I had to pay it to avoid interest or any negative impact on my credit ratings. I realize now that their ad. statements. " We are on side and guarantee your transactions are sadly not true. I appreciate your help with dilemma. 
I will be delighted to supply you with any documentation needed to support my claim