I'm not sure that he is out of options. It seems to me that this company has committed several felonies and since it crossed state lines is ripe for Federal involvement. A simple phone call to the FBI with all of the information should be your next step. I don't think that the FBI would shrug you off if you mention that the BBB has records of 16 prior incidents. If a company is willing to risk Internet fraud and mail fraud (you said you mailed them a check), it's likely that they are guilty of other offenses as well such as tax evasion.
I'm not saying that the FBI will be able to recover the money you spent ... but stranger things have happened.