I don't know where this guy you all are mad at lives, or what, but you can probably file a report for "Obtaining Property under False Pretenses NCGS 14-100". You would probably have to file the report in the jurisdiction where the subject of your anger lives, as that is where the crime occurred. False Pretense is a felony, and will be investigated. The only problem may be, the district attorney in that jurisdiction may tell the police that you all entered into a contract with this guy, and that he violated the contract. The police might then refer you to small claims court. For small claims court you would probably have to go to the Civil Clerk of Court in the county this guy resides in, and file a small claims lawsuit against him. They will serve him with notice of the suit, and he will be required to appear in Magistrate Court, and both sides will state their cases....(bring cancelled checks, email copies, statement from dive shop you guys were supposed to go with).
BTW, government employee in NC.....Police Officer City of Wilmington....I was trying to keep this a secret, now I will really get flamed.