Consumer Law, Warranties Non Compete Rule

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I have a small business, an LLC. I am the President and single owner. I have a VP of Operations on salary that is in charge of all field work and acquiring new customers. We have been in business for 4.5 years and the VP has been here from the beginning. Recently, I found out he wants to start his own business and has since taken all of our cutomers effectively putting me out of business. He claims they were his customers since he found them and serviced them. I also discovered that his personnel file is missing and his non compete paperwork was in the file. He says he will pay me a token sum for my business and take all of my equipment off my hands. Do I have any legal recourse to make him pay a reasonable market value for my now defunct business even though I have no personnel file or contract?