JERRY D. HOLBROOK CraigsList, Remove Item, Agree to pay more for Item Internet

This began with me putting up my first ad of craigsList I was selling a kitchen table I posted and hours later I get this email:
FROM: jerry.h410@yahoo.com
Still Forsale?

I responded yes, I get another email from same email address:
Hi,
Thanks for the response. I am willing to pay your asking price. I will pay by money order as its the only way i can pay you at the moment. I would have loved to come take a look but i am presently out of town on an assignment. I will not be back in town soon. I dont mind adding an extra twenty dollars so you can keep it in my favor, Please send me some pictures.I hope it is in good condition. Reply with your full name, cell phone number,and address where payment should be sent. I will let you know how i intend to go about the pick-up. Please take the posting off craigslist today and consider it sold to me. Expecting to hear from you soon.

NOW, I start to get a feeling this isn't right and I end up taking the post done , responding back and THEN doing a name search. I find the same writing of this email on-line as a scam. So now I know this is a problem, I send an EMAIL to Craigslist and explained to them what has transpired. I have yet to hear from them, However I get ANOTHER email from this person:

Hi,
I have given my assistant the go ahead to mail payment to you.You should receive payment within the coming week( 6-7days time). Once payment is received we can proceed with the pickup. Thanks for your understanding and patience.
Regards,
J.Holbrook

I get the last up to date email from him that reads:
The email title this time was Important Notice
Hi ,
I hope you are fine and alright. I have been busy myself but doing great. There is something i think i must bring to your notice. After a reconciliation of my account , i discovered that somehow my assistant must have over paid you. The payment that was meant for another transaction was sent to you and the one meant for you was sent to another, however i want to believe i wont have a problem with you. Please once you receive your payment, i would like you to deduct your money and send the remaining via western union to my friend so he can use it some of my pending bills reactivate my Fed ex account that i will use to schedule the pickup. I will provide the info you need to complete the western union transfer once you receive payment. Thanks once again for your understanding.

Warm regards
Jerry Holbrook.

I have not responded back to this person for the last 2 emails. My question is , Do I see if this comes and when it does DO i contact the FBI? Or my local police or bank? This must stop and if he is scamming someone needs to give those money orders to the authorities.
I hope to hear what to do next.
PLEASE I hope people will google this name and NOT send money!

Roze
Clark, New Jersey
U.S.A.