That sounds like an absolute nightmare! I've heard of it happening to others and know it can sometimes destroy everything they have.
We had a problem a while back in Toronto where somehow people's home titles were being transferred to a scammer's name and put for sale without their knowledge & there wasn't a darn thing they could do to stop it! It was such a bizarre story on tv and it turns out the man doing this had been charged numerous times for fraud but somehow still managed to keep on doing this? He'd never spent a day behind bars and was still allowed the freedom to remain on the roam for his next victim? Pretty scary stuff!!!
Did the man who stole your identity ever get charged and serve time in jail/prison? Glad to hear you've just about got it cleared up!