Does Dishonesty Pay? May Be It Does:

Guys help me i need help
my heart is crying

I had a feud with My Colleague
We were in a business together, the business fell apart, she was to return my money, she returned some of it about 75%
Then she refused to return the rest . i insisted but she refused and virtually told me to get lost. So we exchanged insults.
Now we are working together, unfortunately she works inthe personnel office and deals with our files,
i wrote her and email asking for information. She did not reply, when i wrote back coping her boss and her boss ordered her to reply she
wrote to me coping my own boss and insulted me for writing the mail instead of coming to her office to ask the question.
I wrote back telling her she was unprofessional to bring the personality issue into the professional arena

Now she brought me a convocation a few days ago. We went to the police station, she told the police i had insulted her and treatened her life,
and that i was writing bad emails about her to her bosses. she wanted to get me arrested. fortunately the police decided otherwise and asked us both to go home and to tell the company to take charge of the matter.

Upon getting to my house, there she was waiting for me, she came agressively towards me
Seized my hand bag in which i had my passport, my Digital Camara, and my work permit. I told her i could not fight her ( i was so surprised because
This is the first time in my life that i have had somebody come to ask me for a fight, may be in primary school i fought but for crying out loud i am 25 years old now )
She said we needed to fight. she pulled my hair, breaking my hair pin, i was so shocked i did not move i just kept telling her that i could not fight.
Then my night watch man came out and saw us and stood between so she backed off.
A few moments later her relatives turned up infront of my gate shouting " if you are a woman come out and fight "
I stayed indoors
I called my boss the next morning to tell him what had happened, he called back a few moments later saying that she was claiming i had seized her Phone.
I maintained my story till  the end, I did not take her phone, i told her, i could buy her A phone if she wanted but i could not give her back HER phone,
because i did not have it, i never took it.
She made the bosses beleive that i was lying and blackmailed taht if i did not Pay for it she would not drop the charges against me.
I am a foreigner and she is a citizen. ( i will keep our nationalitys a secret just to remain anonymous )
so she knew the odds were against me. i finally paid for the Phone, although i maintained i had not taken it.
She took the money shamelessly and dropped the case.

People please tell me, what is the matter? does Dishonesty now pay?
does shamelessness now pay? she has made me look like her, a liar and a thief
I told her in front of the personel Manager and my boss, that " apart from you and me, God was there, he saw everything , he will bless the honest person
and curse the Liar. "
She continued to insist i had taken the phone from her.
Guys i am traumatised , i have never seen such a liar, in my whole life, please where did i go wrong? what did i do?
What should i do from here? i still need to work with her, i still need to interact with her.
At the moment we are not speaking to each other, but i have lost all respect for her.
Help me!!!!!!!!!!

thanks Snazzy, i am still trying to get over it,
i am traumatised. i need to pray a lot to get my strength back.

awwwwwww, this is so unfair 
i can't imagine how people will be this wicked and dishonest!
she'll pay for it oneday i swear
just stay away from her, if she has any human feelings
she'll come to her senses, but stay away from her
once beaten twice shy 

she's worse than that, anyone that can lie to your face, about u, is worse than the devil, not that we are all perfect or saints but this is so badddddddddddd