Ugh. Listening to this just makes me sick to my stomach, this is just all really unfortunate. I had a similar experience when my husband and I hired a contractor and even had our real estate agent refer him to us. We trusted this guy so much especially since he had worked with a pretty big broker in our area and thought, "this guy has X amount of years of experience and works with all of these agents who are investors, he must be good". Totally WRONG. After taking him to small claims here in California it's almost laughable how easy it is for these guys to get away with your money. We won the case, but this thief STILL hasn't paid. Long story short, the worse we could do to him was damage is reputation on Facebook (it's a small town so here it's significant) and put a lien on his property. Oh, and if you go through the paperwork to have a Sheriff serve the defendant, they don't have to open the door. After a few times of trying they just leave and the defendant doesn't have to show up in court. What a joke.
Hopefully Indiana is easier.