Yes, you can sue.
The contents of this answer should be considered friendly advice, not legal advice (I'm a pretty friendly guy), and the answer should not be construed to constitute an attorney-client relationship. If you'd like actual legal advice, call me for a free consultation at 813-635-0222. Also, if you liked this answer as much as my big ego thinks you did, be sure to click the thumbs-up button!
Sounds like fraud to me. You need to make sure you have copies of all papers relating to the deal and see a competent consumer lawyer immediately for advice. You should be able to find one in your area through the following link.