Your state should have jurisdiction here. Although I don't practice in your state and would not bet my life on it.
Most states have long arm statutes that allow for jurisdiction where a contract was breached, a tort was committed, or a crime was committed and the effects of which were felt in that state.
Here, you potentially have all three. breach of contract; tort (fraud-intentional misrepresentation) and a crime (most states now make it a low level felony to pass bad checks).
Hypothetically what will happen is this. You sue, serve him, and end up in small claims court. He doesn't answer, you get a judgment against him. You then have to domesticate that judgment into Michigan. You then try to attach his assets, only to find out that the guy's pretty much judgment proof.
Good luck, though.