I don't think this is the most mature way to deal with this situation. Threatening is one thing, but keep his friends, family, neighbors out of it. You don't know what's going on on the the other side..
By being passive, this behavior is harbored. There's a major difference between someone who's totally bankrupt, completely transparent about their finances, and at least shows they care to pay someone they owe, to a boss driving a Lexus, taking vacations, spending money that could be used to pay the employee etc., and being evasive about his ability to pay.
The latter deserve no mercy.
I wasn't talking about threatening the friends and family themselves, Chas veSholom, rather telling them about the situation so they could pressure the scumbag.