> The factory agreed in writing that we own all the tooling we've paid for and that they will make it available for us to move to another factory if we want to.

This, in concert with the fact that the factory has agreed to give it a second shot, makes that scenario unlikely. For a factory owner in the business of scamming people, it would be far easier just to back out than suddenly start operating like a legitimate business once your scapegoat got busted.