Have an attorney send him a letter
RE: "he took the code & forms with him"
uh, how would the owners of this business respond if this guy had taken all the computers with him when he left??? This is exactly the same thing -- the "code and forms" are business assets that the company paid for by paying him a salary while he developed them. Have an attorney send him a threatening letter explaining that if he doesn't return all the software he took, they'll sue and/or have him criminally prosecuted for theft. In most cases you'll get results pretty quickly.