OMG. I can't believe he would even screw over his own friend like that. When you run your own business, there is NO way to lose 10k. All you lose is your own time, but your labor is really free. Even if you end up losing some money on parts, I can't see it adding up to 10k. I used to sell a bunch of stuff, and there were cases where I had to replace things out of my own pocket. But I was nowhere near losing money. Good luck with your case. I would talk to your lawyer asap.

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2004 WRX - WR Blue Pearl
1997 Eclipse GS - Royal Sapphire Pearl