You said you asked your former employer about the non-compete clause - did they ever get back to you? What was their response? If they can't provide it and they realize they've been caught, you need to demand they contact the vendor and provide a written apology, and whatever you feel is compensation for the loss in revenue. Tell them if they don't cooperate, you'll contact a lawyer in regards to slander and hold them liable for loss of revenue in court.
If all else fails, then go to the BSA and report them - warning though, this could go pretty serious for them. You'll be talking about a lot of money in fines and odds are they can be exposed. While you might feel it's a good idea, morally you might feel dirty because you'll ruin the lives of the owner along with any of his current employees.