My DH and I are at odds on this one. I think small claims court (might take a while to get there) and having another repairman look at the one you have will do the job.
DH says it's theft if he won't return your machine, call the police again.
Either way --- in Oregon, my experience with the BBB is that it's worthless. They don't keep good records and have not had anything on places that gave me bad business.
good luck and keep us posted on this case!