I would of just given him the shirts, phone etc. Let him have it. Be happy you got rid of this guy before he got hurt while working for you and went on comp or disability the rest of his life. The best part is you can move on with out him around. The $200 is nothing compared to the damage a bad guy can do while working for you. Don't take it personal it is just part of owning a business. Every one is out to hurt you every day if you are are self employed. The sooner you accept that the sooner you can take steps to protect yourself from it.