Free Consulting Grant & Investing Experts Sent me a check claiming it was to help with processing fees for a $13,000.00 claim entitled to me. Keeseville, New York

I Recently received a letter in the mail from the Freeport Consulting Grant & Investing Experts. The note stated dear sir. Congratulations! Your Home Improvement Grant with serial #US-CAN2008GRANT-08_NTS1370 was approved in category "A" of the North America Grant paid to qualified and randomly selected applicants across U.S.A. and Canada. Your Home Improvement Grant of $13,000.00- was deposited into an escrow account pending claim. I addition to applicants who qualified by submitting applications, grants were also awarded to a short list of candidates randomly selected from Readers Digest and Publishers' Clearing House database, by ballot from Home Improvement Stores and other participating Department Retail Stores. This is final attempt to settle this aged claim.
    Enclosed herein is a check for $1,925.00 which is a deduction from your total Grant amount of $13,000.00 to assist you in paying the taxes and processing fee for this claim. Paying these fees is a mandatory legal requirement and also serves as a verification method to establish the legitimacy of your claim.
    Next it just goes on about activating the check by calling a GLENN MILLER at 1-866-799-7755 Ext 101 and quote the CLAIM NUMBER and preferred option of A, B, or C. A being accept check with processing fee of $1,300.00, B. don't except check and let it pay the admin fees itself and receive the $13,000 in full or C. No thanks, the award will be turned over to charities in the State? Providence of residence of the recipient after the expiry date. I chose option A. I called the number and spoke with Glenn, he assured me that this was legit, all I would have to do was send in the $1,300.00 via western union/MoneyGram and the reaming money was mine to keep. So I deposited the check into my account, took the $13,000.00 to the money gram and sent it off as instructed, once I had a reference code I was to contact him and give him that number. Now after the transaction was complete I am being told to expect my final check of $11,700 on 5-24-2011 via courier delivery upon having proper picture ID.
    Now here is the kicker
I go to check my bank account today and what do I see a retuned checked for $1,925.00. So now I am in the hole and this guy/company has made off with $1,300.00 that I have to repay to the bank. I had just given the guy a call about a few minutes prior to finding out this information online, and he assured me that the check was real and that I am to receive the second check in 5 days, I still have documents and receipts, please help me what am I to do, is there anything that I can do?