Just to update everyone the Site owner contacted me again and sent me my BTC in full. Although I clearly will never be sending him/her any BTC again I can no longer hold the claim he has stolen from me as all of my BTC has been returned.
This will never ever happen. I do not let go of having my money stolen. I am currently in the process of subpoenaing GoDaddy for the website owners info and fully intend to pursue this legally. The amount of money he has stolen from me makes this a rather serious crime.
On Jan 18th 2015 I saw my coins move out of my webetcoins.com address into an entangled web consisting of thousands of address. Pretty much confirming my worst nightmare.
I was contacted. Asked me for a current address and said I would be processed immediately. They pushed the BTC from pending back into my account. I responded with a current wallet and performed the withdrawal again, will update here if I ever actually get my coins.