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To the OP:
You have a family, and you had 40K sitting in the bank to purchase a car, so that means you're doing something right. On the other hand, you've mentioned a couple of times that his "goons" are probably reading the site. Are you afraid that they'll take you (or your family) out if you escalate the case? There's something you're not telling us. Even if he used threats against you, the ball is in your court. If he threatens you (or unfortunately has one of his goons do something that could potentially harm you or your family), the better it is for your case because you'll have more evidence to take him down.
To me, 40K is a lot of money (particularly if it was cash and not credit) and if I were in your situation, I would have an attorney as well as the CRA on this guy's tail.
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