As disappointing as this experience was for you and your husband, I admire your positive attitude. Thank you for not abandoning the idea of placing your child in the home daycare setting despite having a lousy first experience.
This woman stole money from you and if she had any ethics, she would have returned YOUR money to you.
Most importantly it sounds like your son is happy where he is so I hope you can go to work with the peace of mind knowing he is well cared for.