My question is as follows:

A service was paid for by check, the person providing the service said he couldn't cash it because he didn't have an account. The check was stopped and we were told it would be returned. A Western Union Wire transfer of the same amount was issued and received by this individual who never returned the check and several weeks later cashed the check at a check cashing place and they honored it. What can we do? We never received the work that was completed but he has been paid 2x for this. Please help. Can we have him arrested and will we be responsible for paying back the check cashing place?

If you have proof he was supposed to return the check in favor of the money order, report it to the police. But if the check was stopped then your bank shouldn't have paid it. So you shouldn't be out, the check cashing place should.

The bank did not honor the check and is asking us to pay them. They should be asking the guy who cashed the check shouldn't they?

If your bank did not honor the check why are they asking you to pay. And no the check cashing place has no recourse against you. They took the risk. They should be pressing charges against the guy who cashed it.

We received a letter from the check cashing service saying that we are to pay them a different amount than what the face value that they paid. And that we were responsible to make the check good. What kind of response should I give them?

Ignore the first letter. If they send a second letter respond by telling them you are not responsible for making them whole. They took the risk. If that doesn't stop them you may need to get an attorney involved.

Thank you very much:)