You didn't mention if he live anywhere near you or if he's even in the same country as you. I have been a freelancer for a few years and your situation is a tough one but here is what I would do in your shoes:
1) If paid by a credit card then I would do a charge back
If paid by paypal I would complain to paypal that I did not receive my product. If you claim a physical product was supposed to be mailed to you (like a cd with the website files on it) their is a good chance for you to get your money back unless you sent the money as a service or paid an invoice. If this is the case then it may be a bit harder.
2) If the first didn't work then I would complain to whatever freelancing site you hired him from and file a dispute with them if possible.
3) If neither resolved the issue then try sweet talking him into a modest website with n over sized budget to get his mouth watering. Inform him that you have been burned in the past when you tried to get a website done for your company and that you have several businesses that all need websites. Also that they will have similar if not bigger budgets with relatively the same amount of work but for you to trust him he has to agree to work on a milestone basis. The first 25% will be paid when 25% of the work is finished. If he goes for this be sure to let him know who you really are when he has completed 25% of the project.
4) Make sure to give him a horrible, and I mean horrible 3-10 paragraph review but in a professional way so that you look like an angry person that was just trying to get things done and not some angry kid just posting stuff.
That's all I can think of at the moment. I hope 1 or 2 work for you but either way 4 is a must.