I entered into a verbal agreement with my neighbor for entering into a management
Type agreement to run his convenience store on a profit sharing basis. He asked me to invest 25k in the store and entirely manage the store and take 50% profit. After some months of slogging, I came to know that the store never made any money and he fooled me into this and later started to find out that he had illegal immigrants hired as employee in the store and a big time tax fraud, After learning these things, I asked him to give me back the money as I wanted to opt out of the deal. He is giving me a hard time on this one. I am undergoing enough trauma from this. All I have is a check issued to him indicating the store name in the 'For' section of the check and nothing in writing. Can I sue him and what are my chances of winning.

You can sue him. What you could do is write a letter detailing each point of agreement you have with him, and request that he refund you your investment. The problem, as I see it, is you seem to be claiming that he fraudulently led you into the partnership. There are five elements to proving fraud and you will have the burden of proving each element to win your case. You may need a lawyer to be successful.