That guido line caught me off guard too haha.
Your landlord is an official, certifiable, "don't let him near the children" type of weirdo. If I were you, I would make sure that squirrel isn't in any danger. He may have been sexually abused by your landlord, which might explain his wacky behavior. He clearly has post traumatic stress disorder.
I need you to go to the store and buy a stuffed animal squirrel. Confront the squirrel, remembering to be sensitive to his fragile emotional state, and ask him to point out on the stuffed animal where the landlord touched him/tried to penetrate. It might take hours of therapy and heavy medication to return this poor animal to his natural, squirrel-like state of mind. You wake up in the middle of the night to his squeeky little squirrel cries when he wakes up in a cold sweat. This is going to take alot of time and dedication on your part, but its for the good of this poor, innocent victim of a serial rodent rapist who may or may not have played semi-pro football and emits a rotting-corpse odor.