I don't know if what you are doing is legitimate or not, what would happen if the person clocking in as you is injured? theyre not clocking in as said person so what would happen? anyways not here to say what youre doing is bad or wrong take a step back and examine what your actions can cause, sure saving the money would help you but you had the help of someone when you needed it. Maybe they themselves need that money just as badly as you do, could it be they need it for medical reasons? groceries for their family or for themselves? I dont know you or the circumstances around you but you will decide for yourself what kind of life you want to live, one where someone helps you and you help them. or when where you wont end up having people help you, and those you do will only be manipulated by you. this is your call to action, who are you?
Regardless of not having the job anymore and some shady sounding business practices by your fomer employer, you made an agreement with someone. They worked the hours for you. They deserve to be paid back for those hours. How would you feel if the situation were reversed? I bet you'd be pretty pissed and would want what was owed to you. Your justification of needing the money doesn't fly. what if they are experiencing financial hardship as well? Either way, it's a dick move on your part.
The question isn't should you pay him back, it's how bad is he gonna fuck you up. I'd make it real good for 250... Karma will see this one out I hope!