I have a question: why would anyone provide a service without a signed contract and a deposit in advance?
I feel for you - but its mostly a 'wow, who would be so stupid?' kinda feeling.
you could always try court - see if a judgement against him would deter from future scams.
If you don't sue - he's free to scam the next sucka'
you will not get a response - they are scammers
you will have the satisfaction of perhaps one day dealing with one of their relatives (in your service industry) and maybe just chuck 'em in a cardboard box, pour some cheap lighter fluid on the corpse and toss in a match - all while the relatives are present at the wake; then turn and state that they should have taken the upgrade service
