Truth, you need to go to the USPS and file a report, as everyone else involved with bad dealings with this guy. Trust me, they will look into it, especially when more than one person files. He shows a lot of intent, and that it the true defnition of fraud. The reason why the police dont do anything is simply because its not a police matter, its federal. Postal Fraud is looked at differently and investigated differently as well.
It might not do you any good, but, the more people that file, the more serious they get. And, from the looks of things, there are more than just you. With those large amounts, I would almost believe that you werent the first, and wont be the last.
Secondly, no offense to Ball Room South, but I would lay into them since he used their Delta acct. Thats fraudulent as well. I would also think that Delta would not take this lightly. Now, I cannot speak based on any experience as I am waiting for my inspection with Delta, but the mere fact that they have to inspect me would lead me to believe that they would not take this lightly.
Third, contact an atty. They will make collection attempts as well as utilize the law to get you paid. At least with the fear of possible imprisonment you might get some money back. The atty will also try to bill him for his expenses as well. Sure, you might be out the money upfront, but in the long run, you will see your money too.