The USPS is federal, and they have a mail fraud division specifically for this type of thing. Im not sure if you checked the tracking info I posted, but the letter originated in Los Angeles, CA. The USPS can do a lot with that envelope and all the info on it.
After checking further, there was a William Watson who lived in Oak Ridge, TN; but he passed away several years ago. This is a huge deal. There should be absolutely not a doubt that it is fraud and going to a bank will not do nearly as much good as going to the USPS. They don't mess around. In fact, you will probably be contacted by the FBI if any questions come up. The USPS fraud dept has a webpage you can go to.
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