Should I make a police report on this small business?

My husband withdrew money out of a small businesses ATM. It was a alterations place, to be exact. When trying the transaction the first time it said there was a communication error. When asked by the business owners son what to do he said everything is fine and to try the transaction again. My husband did and the money went through and he got the money out and paid for the stuff. When I checked our account that night I noticed that the money was taken out twice on our online bank statement and the atm listed was the small business ATM.... When contatced about getting our money back from the business they gave us the run around for two days now saying "I'll give you your money at this time" and every time we went to pick it up at their business they either didn't have our money, or the person authorized was not there. When calling again about it we were put back on the phone with one of the business owners telling us he was not going to refund it that I have to take it up with the bank to get our money back, that they didn't have it. He admitted that on the ATM record, it supposedly "sucked the money back in" and that it was not on record on the ATM it was withdrew.... but on our Printable bank statement it clearly states it was and my way of thinking is just hand us the money both the ATM and our bank statement claims was taken out anyway but he won't! Our bank if going to want proof that we didn't in fact receive the money from the ATM but how are we supposed to do that when we only received one receipt for the transaction we did receive money from... Where do I go from here to get our money back? Should I make a police report on the business because it's their machine that did not give us the money? I don't see how our bank will give us money back if on our bank statement it claims we got it with no problems when this business owner clearly KNOWS differently!