Good luck with your case this morning- I can't wait to see how things go.
It's not just about the colt. He's priceless to me, but this man stole from me!
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Personally I am wondering if the BO had "seller's remorse" of sorts due to his financial issues- maybe figuring he should have kept the mare until she had the foal to sell? Or maybe trying to be slick- saying you bought the mare, not the foal which hadn't been born yet? Or if he just saw opportunity knocking and grabbed it figuring you wouldn't go this far.
As much as you were good friends...people do stupid things sometimes even despite family ties or friendship. My uncle's family accused me of medical fraud- my cousin and I were in a car accident and I injured and possibly broke my neck. Needless to say he flew off the handle and accused me of medical fraud. It later turned out their car accident history was so bad they nearly couldn't get replacement car insurance when their existing policy dropped them.
There has to be more to this situation that you aren't aware of...especially since his actions don't make much sense. If it isn't you holding back information (and I don't believe you are) then it stands to reason IMO that the BO is hiding something he doesn't want you to know about.