How do I recoup some of my losses from a building contractor that never finished the job.?

I paid for most of the building costs up front (over 300k). I spoke to a lawyer, I can sue him but we are pretty sure the funds are gone and if he has any ets they are hidden. The structure is worth less than 100k and there has been no progress for a year. I would settle for a tax deduction. I have an LLC that I buy and sell properties but this one was to be my personal residence. It's now an investment (loss); I won't be able to live there. I think I can claim fraud, the second draw was suppose to be due after the roof was on, I sent the check when I got the bill and later found out the roof was not completed. That was more than a year ago. Is there a tax write off for fraud, bad debt, or anything I can use?