That sounds horrible. To protect others - DPoR would love to hear your story. They're a regulatory agency, so they're not going to charge you like a lawyer would. Contracting without a license is a big deal, and they'll hit him with some pretty big fines. I'm really glad you got your money back, but if this ever happens again, they can probably help you.

The Virginia SCC may also be interested in him conducting business under an expired LLC (I assume that's what you mean by business license).