I'll post this here first and then I'll update the main page.
I called the Citibank fraud number today and explained my situation. Once again they said told me that they have no reason to believe that the check was not deposited into the account that is on the back of the check. The rep said that legally they are not allowed to give me the account number at Chase where the check was deposited since I am not the account owner.
I took some time off of work today and went down to the branch. I spoke with the branch manager there. He pulled up my account and told me the same exact thing. There is no reason to believe that the money was not deposited into his account. If there was an error and the monies were deposited into an account that did not match on the back of the check then those monies would have been credited back to my account by now. He printed out copies of this check and the previous month and both signatures match and have the same exact account number.
The branch manager was getting upset that I was being put into this situation. The branch manager agreed with some AT posters here that I sent him the check, he admitted to having possession of it, he signed it and put his account number on it. After that point it is not my obligation. He gave me his business card and asked the LL to call him personally.
Next stop, the police station. I talked to an officer and asked if I could fill out a report. I explained to him the situation. The officer said we cannot fill out any paperwork because a crime has not been committed between myself and the LL. He said my bank has no reason to believe that the funds are not in his account. Now, if the check was lost or stolen while the LL has possession of it and someone other then himself cashed it then a crime was committed. The officer asked me to speak with the LL and have the both of us come down to fill out paperwork if that is the case. If it turns out that the LL is trying to defraud me then there will be serious consequences by him filling out said paperwork.
As I type this the LL sends me this message
Joe my friend at Citi was able to help me as much as possible. She gave me a form called a affidavit of forgery. It needs to be filled out, signed, notarized and a description of what occurred written in. Would you like me to fill out the entire thing and just have you sign it? I am also a notary, so I could notarize it, if you prefer or you could bring it someplace.