I've just been contacted and am not sure how to proceed with this as of now... but yahoo requested that if I do pay everyone for just 2 weeks, I am to return the remainder of the funds to him... THAT I will not do.
If the owner of the site has absconded (run away) and is not paying out winning bets on his site then it would probably be best to not to continue to advertise the site (especially if the OP does not want to be associated with a site that is possibly scamming).
How to best proceed would really depend on who your agreement is with. If your agreement is with yahoo, then if he wishes for you to payout early then there is no issue with paying out early as long as you payout the full amount promised to each user. Any excess can be returned to yahoo in this scenario.
If your agreement is with the owner of the site and it is apparent that the site is either not functioning properly or is scamming AND you are unable to contact the site owner to get advise as to how to proceed then it may be appropriate to end the campaign, pay users in full and hold the excess amount until the site owner is back online to give advice as to where to send the excess funds. If you can reach the site owner then you can simply follow the instructions as to how he wants to proceed (as it is his money).