It seems to me, without researching further, that the prosecutor would have a pretty tough case here. I could be way off base, but I think they'd have to prove that he had the intent to deprive them of their money at the time it was borrowed. That was most likely not the case, as he probably had ample money at the time and fully intended to repay it. It's just a simple case of him not repaying borrowed money and therefore defaulting on the loan -- which they'd have to sue for in civil court, not criminal.