What is my recourse when taken in by fraud?

[Michael Cheatham]

Bigger Pockets Community, last year I provided private financing to a Real Estate investor, to rehab a duplex and either refinance or sell it and return my funds in six months.  The investor provided updates on the progress of the rehab, that proved to be false.  After the expiration date of the loan term, I tried contacting the investor to arrange for the return of my funds, plus interest but did not get a reply.  

After dogging me for several weeks, in contacted me to say that he had used the funds for something else and was not in a position to repay the loan.  Though I have a promissory note and a recorded second mortgage, the current value of the property is not sufficient to satisfy the first lien holder and my loan, therefore foreclosure will result in locking in my loss.

What options, if any do I have to recoup this six figure loss?