Steam will not lauch

After having used an illegitimate copy of the game (yes I know ) I decided to actually buy the game through steam I didn't to delete the older copy or the my documents folder, but the game still started with all my mods working. I decided to get rid of the old copy and the files in my documents, (if it helps the path is D:\My Documents\My Games\Ironclad Games\) after that it stopped launching and would go into a loop of steam attempting to launch the game. I did a full re install of the game however there is nothing in the my documents folder and I am still encountering the same error. 

Edit: sins works in steam offline and trying the dev.exe in online says failed to initialize steam.