Sorry for your troubles. Been in your situation as well, but I never saw a dime of the money that I loaned. People always say they will pay you back, but the way I see it now (at least with my friends/family) is if they don't have the money now, hence needing "help" what makes them/me think they'll have the money to pay me back when the time comes.
I think the most I loaned out was $500.00 so a lot less than you did, so I sucked it up as a foolhearty errand on my part. Is that person still a friend...yeah kind of...even though she doesn't listen to any advice and is in a worse situation now then when I loaned her money all those years ago.
But I made a vow that I am never loaning money ever again. I made myself into what I am through hardwork and determination. Both my degrees I've paid for on my own, so the way I see it is I can do it then so can they. Maybe I'll lose family/friends over it if it ever comes up again, but that's something I'm willing to accept.
Good luck with your situation. Hope you get your money back or at least some peace of mind.