Wise,
That is one very heavy situation for you. Besides the actual harm done by your neighbour, you have the knowledge that the person living next door to you has criminal intentions.
IMHO the most important thing is to get legal help and not try to confront this person yourself. This is time for damage limitation I think, as these 'neighbour from hell' situations can get very ugly.
I think you have done everything right so far, in contacting all the agencies etc. You have had a horrible time though, and that's a fact.
Peaceful thoughts, M
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