Am I a victim of an internet fraud?

It has been 3 weeks since I ordered 2-units of celphone from SKTelecoms a.k.a kenelectronicsltd@hotmail.com in UK, but until now i havent received the items yet. The negotiation was thru a msn chat and the payment was made thru Western union. He told me that I have to pay another since he doubled the quantity of my order with one free (for a total of 5 celphones) because of their change in minimum order policy. Am I a victim of an internet fraud? Can I get my money that I paid to him? In what proper authorities should I call for help?