OK.
I don’t know what the laws actually say about this (they are pretty quirky), but I do know that if you had gotten the money out of their hands when you quit and into your own hands all of this would have been moot.
Sorry to hear someone is trying to take advantage of you, but that’s why you’ve got to watch out for yourself.
Thanks—live and learn kind of thing. It’s not a huge amount in the scheme of things, but still, it seemed to be his money at one point in time and now it may not be.