You were scammed, unfortunately:1) The state does not collect debts, other than its own debts (e.g. a tax debt). Sometimes a court officer or constable may help with certain collections activities, but wage garnishment, but is pursuant to a court order after there is already a judgent against you. They would not "pursue allegations" and cannot negotiate a payment plan.2) An "arbitrator" is NOT a debt collector, constable, court officer, or anyone else who would be connected with collection of a debt. An arbitrator is someone who is selected to essentially act similar to a judge, in rendering a decision on a dispute after both sides have had the chance to present their evidence. An arbitrator would never contact you to "pursue allegations for a debt.You should contact the police and report this to them.