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That is so messed up.  You probably should have called the police on them, make them sweat a bit.  I was in a situation that was somewhat like this a few months back.  We had this guy come over to work on my truck, he came recommended by a friend so we let him.  Anyways, the first day he did a really good job.  He looked like he knew what he was doing and was trustworthy.  We actually gave him $200 to buy parts but that guy didn't even show up the next day and we couldn't get a hold of him or anything.  A few days later we saw this guy when we went over to a friend's house and when we confronted him he broke down crying and was just being pathetic.  Apparently, he used up all that money to buy weed.  Long story short, we we were super pissed.