Sigh...never, ever lend money to family or friends without a contract. but it is a little late to say that now, huh? Bottom line: You prefaced your post with "someone I dearly love" If this is so, you may have to make the decision to (a) pursue getting your money back (with interest, I would hope) or (b) keeping this relative. How important is he to you? I can guarantee, right or wrong, if you pursue this, you will no longer have him. (before anyone posts about the wisdom of keeping someone around like this, remember, it IS a relative) It is a very difficult decision to make. Best of luck, however you decide.