I'm afraid that it's very much a case of "caveat emptor". Someone selling new, sealed, Kindles at $200 really should have set alarm bells ringing, given that Amazon are the only original seller of the Kindle and they sell it for $259.
I'm sorry that your uncle was conned in this way, but really, the only thing that you can do now is to talk to Amazon and see if they can help you.
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