A loan requires repayment and must have definite payment terms. I assume the agreement was oral, as opposed to written, and there were no payment terms. It is probably unenforceable. But you can sue him in your local magisterial district justice. If he fails to defend, you will win by default. Then you can ask the court how you can enforce it.
The second theory is that he defrauded you. In that case, you don't need to prove it was a loan with definite terms. You only need to prove that he lied about what the money was for and had you known what it was for, you would not have given it to him. You have 4 years to sue on contract and 2 years on fraud.
Answered on Feb 10th, 2013 at 2:32 PM