All sympathy for the problem.
However, I suggest you not use accusations such as fraud (even when it's possibly true), because, in a legal sense, prosecution for fraud requires proof of prior intent (he planned to steal the money). Failure to perform the terms of a contract is a civil liability, but not a criminal act.
Failure to return the money is not strictly speaking theft, it's a term many have never seen used before in this context. He did not steal the money (which was entrusted to him in exchange for goods and/or services). Instead "he converted it for his own use". This is perhaps the most frequent cause of disbarment of attorneys: embezzling client's funds from an escrow account.
Although nothing like universally practiced, many Courts will award attorney's fees, filing fees, expert testimony compensation, etc. to the winner in civil suits, especially if the loser's behavior has been obstructive (foot dragging, low-ball settlement offers, pointless adjournments) rather than defensive. Can't hurt to tell him this in polite language.
Have you tried Yelp, Better Business Bureau, Facebook etc?
several building contractors have been on the local spotlight lately for doing the same thing; acquiring money from the owners for contracted jobs, then not delivering on the work.
"converting for one's personal use" is the charge applied. there are also a couple of people accused of diverting funds from different governmental institutions around here as well. "for personal use" is charged, as well as embezzlement.
i do not like people like this !
