Trek, Verve 2 or possibly Verve 3

What happened

I know exactly what happening. Normally I lock my bike to a street sign in front of my apartment building - 6114 N. Winchester Ave, in Roger's Park. I arrived home as it was getting pretty dark. As I was about to start locking the bike, three black children (they seemed about 10-14) pointed at an outdoor cat and said "Is that your cat?" In the dark, the cat kinda did resemble mine, so I immediately went to the cat to examine it. Probably 20-30 seconds passed, and when I returned my bike, and all the kids, were gone. I promptly walked to Emmerson Park, where I saw three kids who might have been the same ones. When I approached them, they ran. One tripped, and I asked him where my bike was - he said it was taken by the other two kids, not him. I suspect these kids live somewhere in my neighbourhood, but I've no proof and I probably couldn't identify any of them.

Bike details

Type
Hybrid Bike
Color
White & Silver
Size
Pretty large
Condition
The nut at the very center of the handlebar is badly rusted, from sitting outside in winter. The chain and gears probably also show signs of wear / corrosion. The bike has a KryptoLok series 2 Standard (I'm pretty sure that's the exact model) U-lock attached to the post between the handlebars and frame. The lock was not defeated; bike was stolen during momentary distraction. So unless it's been subsequently defeated, the lock should still be there and nobody but me has the key to open it.
Serial #
Unknown

Theft circumstances

Date
Aug 12, 2015
Lock type
No Lock
Locked to
Bike not locked.
How locked
Not locked.
How defeated
Other situation, please describe below.
Duration
It was not locked - I did not have time to lock it before it was stolen.
Area
Front of building in residential area.

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