Got crapped on bad!!
Whatever you decide to do, in the future DO NOT do any work until you have your client sign a contract. You should make sure to receive at least 50% of your fee *before* starting any work. And if you find out someone deals with guns or generally gives you a bad vibe, do not do business with them.
Scarano has had the best response so far, if you are not willing to go through the proper channels to recover the costs of this project than you should not have embarked on it in the first place. If you knew he was a little crazy, why did you enter into a contract with the guy, especially without writing anything down? Sounds like you knew what you were getting into, sorry to say.
Go after it the legal way, or drop it. Every other option will get you in more trouble than you will care to deal with. Especially if the guy is crazy like you've mentioned.

Either way, did you or did you not have a written contract? If not what were the conditions?
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