Fact is people who try to run businesses with the best of intentions but little discipline go out of business all the time taking people's money with them. It is not looked at as a scam by the government. The worst any action you guys could bring against him would be to force him to file bankruptcy at which point you wouldn't get your money back anyway and your motives are exposed as merely revenge, rather this noble idea of justice and "teaching him life lessons".
As I said, there is nothing criminal in what he did. I see people like him everyday in the business I work in (bankruptcy). It wasn't very ethical what he did. He was a coward in the end by running away and letting someone else do his work for him. But here it is. I guess we could say that the road to Hell is paved with good intentions.
"Nothing criminal..." Really? You're comparing DA to an entrepreneur who fails at starting up a businesses? I have no background in bankruptcy (fortunately) or even much at business, but I think there is a distinct difference between what DA did and what a new business that fails does.
New businesses take loans to get their business started. Sure, they may have investors that eventually share in the success if the business succeeds. Those funds are put towards resources in getting the company started: employees, tools, materials, real estate/rent, etc. They don't take that money and spend it on themselves (i.e. video games, michael myer's masks, vacations).
Actually, one "business" man did that, and Bernie Madoff will now be rotting in prison for stealing millions of dollars from people. Sure, a much larger scale, but both of these individuals still took other people's money, spent it on themselves, and delivered nothing in return.
I don't see how you can say there was no criminal act committed here. Did Josh use the thousands of dollars to buy new paint and materials to get the job done? I highly doubt it.