Just because they ran a fan site on RonPaul.com does not automatically mean they own the name/brand/likeness/trademark of Ron Paul online.
They should have continued running the fan site. Offering to sell the domain to RP for $800k then $250k is where they messed up.
They changed their status from fan site operator into cyber squatter.
Running a fan site does not give the fan site operator ownership of the famous person's name online. Running a fan site is generally protected as fair use. Trying to sell a famous person the .com version of their name is not fair use, fan site operator or not.
What they needed to do was choose one or the other, but not both. However, they wanted both and this is the result.
Want DP delivered to your inbox daily? Subscribe here: