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Lawyer here...F-18, don't walk, run to a lawyer.
There is obviously some information that the police have re: the wallet and missing $$. Somebody probably reported seeing a kid pick it up and walk off with it. The suspects probably took the $ and checks and dropped it. Then your son comes along and turns it in. probably the same height, weight and age of the perp. So the cops think they have at the minimum a possible suspect.
As far as the cops in your home, as long as they were let in by someone of age who has a property interest in the home and is able to consent to allowing them in, their presence is ok. Then anything in "plain view" can be inspected for their safety, or obvious contraband. (ie. your wife lets them in to chat about the wallet and they see a pound of pot on the kitchen table....or a knife with blood on the t.v) I would obviously object to them going through personal papers of yours on the table if an issue ever arose there.
You should get a criminal defense attorney, or at least consult with somebody if the police aren't giving you any answers.
Forgive me if my 4th Amendment skills are lacking, I do mostly real estate now.
BTW-we gotta get together for that "swap" soon.
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