Since I know neither of you are going to come to a decision about whether to negate debt or just give him the money, I'm going to make it for you.
Since you @Obblebobble choose to not file a complaint on Fury for the late loan I will assume you fully expect him to return the money in full at some point. So here is the deal.
Per your contract you owe @ldw116 40% if the profit you make on Fury's loan with his portion of the money, as per your lack of complaint or evidence any additional late fees I am capping the profit at the 1.2 million loan payback + the contracted late-fees.

I'm glad others can math, its not my greatest strength. Anyway. This is what I feel you @Obblebobble owe @ldw116 in addition to his original investment. You offered to apply it to his debt, he has not given yay or nay in favor to this. Ldw has yet to appeal his ban.
Since that money does technically belong to him, I'm gonna ask you pay @ldw116 his investment + profit that you're expecting from Fury's loan, which after examining the math comes out to 308,437.50 ECD. I am quite tired of seeing the back and forth and quite honestly would prefer if you guys just settled your accounts with each other so this can be done with.
I am glad this could be handled civilly this time around, thank you for that. I am doing it like this since you @Obblebobble refuse to file a complaint on Fury, therefore you evidently expect the loan in full back at some point. Technically should be able to afford to pay @ldw116 what he has been promised, since it hasn't been proven that Fury has scammed you.
Yeah, he owes you money, you owe him money. He wants his money, you want your money. This is just a nice conundrum isn't it? But who is going to be the bigger person and just play the game right? You both can still make the wrong choice.
Anyway... @ldw116 gets his money, and he can choose what to do with it when he returns, as he is banned for scamming you he will owe you money and is bound to pay you, just as you are bound to pay him.

308,437.50 due to @ldw116 within 72 hours(3 days) of his unbanning(TBD on Appeal).