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Friend and business is hard to mix, I have recently some new transaction that involves friends, but in general I try to avoid it. Hopefully friends can work it out and no problems, but good friends are few and far between. But one thing I can say, until something happens it is hard to know who your 'true' friends are.
To me, I would just bug him, and if not, you can always take him to court, and let all your friends know how he is a liar. This is not as in to tattle, but more as a warning from a friend. I would then cut all ties to him, and that is that.
I admit I am harsh but I have high standards for someone I call a friend, and lying / stealing from me, violates those.
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