I can't believe those kids...and everyone believing them! Awful people to put you guys thru that.
My uncle kind of did a similar thing though...he's basically lied about my mom and making my dad look like an ass. And naturally, my grandmother believes him. I hate his guts and wish he'd just die; he's been this worthless all his life (my grandfather didn't like him either.)
Fortunatley, he doesn't speak to us, otherwise I'd be like you and stuck for a solution.