Dude that sucks, I feel for you, my wife found herself in this exact same position a couple years back when we were dating. Basically she moved in with a friend because she needed help making rent after her separation from her husband. After multiple issues, she moved out, and her roommate promised to have her removed from the lease. Well you can guess what happened from there... The roommate never had her removed, stopped paying rent altogether, and my wife got stuck with a collection notice and a notification of pending court action. Fortunately it all got worked out without having to go to court, but yeah, sometimes you can definitely get burned by people you think are your friends.
I know you don't want to reveal names, and I think that's admirable. But I think you should consider saying something if that person ever tries to sell something of significant value on the board (a VX, engine, other major mod) where another member might get ripped off.
But in the end you still have the ORW, so at least you're not all the way screwed. Good luck with the legal battle, we'll be pulling for you!
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. Hope everything goes well in the legal battle. 
