she's definitely lying and you should be able to sue them...but realistically, your damages are not tangible in the eyes of the law (IMHO) so in order to basically sue a gov agency you would have to have deep pockets to pay your own legal fees (maybe $1M-$2M+) or find a law firm that thinks your case is worth taking up (for 40-70% of the winnings).
Given that this would be a gov agency - it won't happen...take your free vacation and chalk it up to a learning experience...sorry hun, best wishes...:-)
