I would advise you follow the wage claim route with the state since you were an employee. If you were a contractor you'd have to sue in small claims court, you'd undoubtedly win a judgement, and then it would be up to you to enforce the judgement by getting a lien on the company's property or such. With the wage claim you'll still probably not get anything, but it might prevent him from running more scams in the future unless he settles up.

I strongly advise you emotionally disconnect from them. It sounds like you like them and don't want to cause troubles for them, and they like it that way. You may find they are not the nice sweet people you thought they were as soon as you require them to pay you the money that they owe you. They are not doing you a favor paying your wages, that is money you earned. They are not your friends, they are thieves who stole your hard earned money from you. Don't allow the fact that they did this while smiling and patting you on the back to distract you from your goal - to get paid what you are rightfully and legally owed.