Aww geez Anna, I'm really sorry to hear about this. Some people suck farts so hard, I'm surprised they haven't passed out and learned not to keep sucking.
You said you had the cops come, what did they do? I know this sounds a little CSI, and they probably wouldn't take the time, but dusting for prints doesn't sound like a bad idea, as there shouldn't be anyones prints on the cage but your own (or possibly others close to you).
Absolutely watch CL, I wouldn't be surprised if he's up there already. As for flyers, don't give too much information to them. *LOST CHAMELEON, BIG REWARD, CALL #XXXXX* Eventually if someone knows something or cares enough, they'll give you a call, especially if they think there's a lot of money riding on it as previously stated. Crack-heads aren't terribly smart. It probably wouldn't be too terrible an idea to watch the path these people are taking, from a distance, to see if anyone suspicious drops by. Maybe even try baiting them with something valuable, or another animal (as long as you never take your eyes off of it) but I would make this my last option.
In the meantime, check the bushes, check the trees, check the fences, check the neighboring yards. Stranger things have happened, and you wouldn't want to end up following the wrong path (as in someone took him). It's unlikely, but it doesn't hurt to cover every possibility.
It's such a shame, he seems like a relatively friendly animal, which would make taking him even easier for someone. Most people at the sight of a gaping, hissing, lunging chameleon would promptly say "F--- THIS S---!" and move along.
I feel so bad, I wish I lived closer to help out. I hope you won't bash yourself too much, as there was virtually nothing you could do. In fact, it was the love you have for your animals that (possibly) allowed some d-bag to take advantage of your kindness, and unfortunately you can't change most of these people. I really wish you the best of luck, and I'll be hoping for a positive outcome. I'll keep checking back here to see what happens.