I completely agree there should be accountability. The guy should deliver the products or repay the money, no question.
But as a practical matter, $10,000 is sum that most people don't have laying around available to write checks. Small merchant or not. Plus, the $10,000 seems to be just the tip of the iceberg. It's highly unlikely that he put the money into a savings account for safekeeping, and there seems to be a lot of people in line trying get their money back.
I speak as someone who has been ripped off for a large sum in past dealings (much larger than the numbers being discussed here), so I know how hard it is to get money back that is owed. There are very few people that will make good on debts if they feel they can avoid it. I do hope this gets resolved properly and those that have been ripped off get their money returned to them.
All I know is that I wouldn't want a bunch of pissed off audio engineers hunting me down.