Down payment with private owner

I put money down on a car ($1,000) down payment for a private owner, then
had trouble reaching him afterwards, no call backs and voice mails 3 months later I found out the car was
sold, and that he claimed he could keep my money, after searching online and
talking to police he told me, that he didn\'t have to return the down
payment, because the law states that if the buyer doesn\'t come through with
the deal, and technically forfeits the deal, then by law that money belongs
to him.

Can i do anything about this!?

If you could not reach him, then based on what you say here, you could file suit against him (or at least threaten to do so) in small claims court or in regular court; filing in small claims court is easier and requires no attorney...you could try to collect all of the costs and damages that you suffered due to his behavior...