And my real huge worry is do you think I will get in trouble with the police. Will they come after me??? Please answer me because I really feel like I am having anxiety attacks since this happened.
contact the police and the check cashing place I think that you will not have to worry as much about being arrested. You contacting them first (especially the police to file a police report) will show that you know that you have now found out that this is a scam and that you are not the one trying to scam the check cashing place. When you approach the check cashing place you could bring up that you are willing to pay the money back but you do not have it all right now, and then see if they are willing to work out a payment plan . . . if you go there all of the time to cash your paychecks then they might be willing to work with you to keep your business and just keep a portion from each check that you cash there.
But like I said, YOU contacting them first will show that you are honest and willing to work this out.