My business partner of an S Corp deposited checks made payable to the corporation into a personal account with his and his wife's name on it. Can I get the money back from him or is the bank liable too?
You are correct to assume that your first target for recovering these funds is your business partner. If that approach doesn't bear fruit, the corporation is still owed money by the parties whose checks were converted to your partner's use (since the corporation never obtained the payments). You should attempt to obtain payment from them. They will understandably argue that they paid the money, and will resist paying it again.
The corporation can sign affidavits stating that the checks were never endorsed by it, and that it did not receive the proceeds of the checks. The issuers of the checks then enter claims against their banks, who in turn enter claims against the bank into which the checks were deposited. That bank will be out the money, and will have to recover from its customers (your partner and his wife). It's a cumbersome way for the funds to work their way back to your company, but it's designed to place the loss with the party dealing with the crook.
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You are correct to assume that your first target for recovering these funds is your business partner. If that approach doesn't bear fruit, the corporation is still owed money by the parties whose checks were converted to your partner's use (since the corporation never obtained the payments). You should attempt to obtain payment from them. They will understandably argue that they paid the money, and will resist paying it again. 