Wow. The person who did that to you acted totally unethically.

> I don't think I can "clear things up" with the police without looking pretty guilty or even breaking into tears.

Are you insane?

Do NOT talk to the police!
Do NOT talk to the police!
Do NOT talk to the police!

EVER! AT ALL! UNDER ANY CIRCUMSTANCES!

Look up why not to.

Get a good lawyer and follow the advice. You are probably mostly safe as long as you do not provide the police more evidence.