That's awful. I've seen other posts about that place - was that you also ? IF NOT - you may want to do a search here and maybe you can band together ...have you filed a complaint against this breeder ? Since your poor puppy was ill and died I would try to see if there is anything you can do.
I'm really sorry for your loss
and I don't blame you for being upset. I'd be devestated too.
What a coldhearted tacky thing for him (or her) to say to you.