So times have been pretty tough for me these past few years, and the move to NC has made things worse. I've sold off most of my most treasured musical instruments, and my business continues to get worse. I had thought that more people would be improving their existing homes instead of buying new ones, but it seems that most people are just hunkering down and not spending any money that they don't have to.
So I got in touch with an old friend who I used to have a painting business with about 20 years ago. He lives in Redmond WA and has done very well for himself. When we had our business, he was the paperwork side and I was the actual work side. I had two small children to support, and he was single wit low expences. I worked my ass off at that business for two years, and barely made ends meet the whole time. So at one point I figured out that he had been stealing money from the company since the begining. This really stung because he had been a good friend for many years, and I trusted him. When I confronted him, he laughed at me, and admitted what he'd done, but had not the slightest remorse. Since he was the one doing the books, there was no way that I could do anything about it. I thought for awhile about killing him (really!), but I just don't have that kind of violence in me. So I just moved on with my life, but I have never forgotten about it.
So I got his email from a mutual friend, and sent him a message telling him that I felt he needed to take care of this old debt and wrong that he'd done. I didn't threaten him, and I was nice about it, but I let him know that he'd done a really bad thing that hadn't gone away, and this was his opportunity to take care of it.
So, what do you think? would you have done it? Will he laugh at me? Will he hire a lawyer? Will he send me the money he owes me?
I'll let you know.

good luck!  i hope he does the right thing, but i've found that most people that would do something like that don't feel the slightest remorse, hell, i saw it in my own family when my parents died.  
whatever he does, he'll get his in return

Whether he feels remorse or not, unless he struck it big somewhere, I doubt he'll part with any money.  He may feel that giving the money back is the right thing to do but then he'll think about what he'd have to do to pay it back-- sell his car; trade down to a cheaper house; live on a few hundred less a month for a year or two.  Even if he wants to pay it back, he probably doesn't want to enough to make the sacrifice to do it so he'll rationalize why he can't.

Yeah, worth a shot but good luck. Had a buddy in the same situation with his friend/business partner legally embezzling thousands while he was livin' hand-to-mouth, never got that one resolved either. If you could prove embezzlement then ya got it made, but if he's doin' the books he's likely got his ass covered. Karma will catch up with him.