The website is down currently but if it really is money which was embezzled from a bank account then I agree. You do not need to sue the guy. Embezzlement and theft are both crimes in most jurisdictions so the police can handle the case for you.
EDIT: Seems they were aware it was a crime and just did not want the hassle of appearing in court when they were busy with the company.
It's not US, it's in Norway. See the link at the top of the blog: Norwegian Startup List. As well, a link to his company's website: http://businessmodelpress.com/
EDIT: Seems they were aware it was a crime and just did not want the hassle of appearing in court when they were busy with the company.