Renter fails to return rented audio equipment...

I rent audio equipment under contract. One renter missed the return date and starting making up excuses for not returning the equipment. He said his rental car got towed and that he cannot access the equipment, which is in the car. However, I contacted the supposed tow yard, but the car was never there. At this point, he is no longer replying to my calls/messages and I'm at a loss of my physical equipment, never mind the extra rental days. Is this theft / embezzlement / breach of contract / something else? How should this be reported to the police and what would be a course of action for either recuperating my equipment or obtaining monetary reimbursement? Daily rental fee is $175 and equipment value is approximately $3000.