Severed Ties with a recomended Vendor

I hate to do this but after some things have been brought to my attention I feel I need to say something to you all.
Back in February I highlighted the Cake Pan in a vendor spotlight. At this time I regret it. I don't make a habit of spotlighting someone and them not being awesome.
Dawn and I went to church together. She made these amazing cakes for several occasions at the church. They looked great and they tasted great. So when she told me she was opening her own shop I thought great. She asked if I would recommend her. I said from what I saw I would pass her information on to people. One of my brides booked with her. She did her cakes and they were great. She did everything she said she would and her prices were great. During this time my family and her family start to hang out together. Dawn was a friend as well as a vendor.
Another two of my brides book her.
The first of these weddings comes and I was stressing because I was not getting straight answers. She ends up showing up the cake is cute and what the family wanted. I noticed some things and called her out on them. Like the shape was not what the family had asked for but she told me that she discussed it with the family that this shape was better for the cake. It was not until months later that I find out that it was not discussed. But they didn't care.
The second wedding comes. I don't hear back from Dawn she is missing church and I am stressing about her getting this cake done. I knew she had just moved because I helped her. But figured she was out at the shop doing the cake. I drive out there to get something of mine and find the electricity was turned off. She said that with the unexpected move she forgot about it, but no big deal she was not storing anything out there and was working from home. Assured me cake was coming along as scheduled. The cake shows up and its just not right. It resembles what they asked for but its not it, exactly. Also there was no cake stand. It was set up and she was gone before I could question it. I ask the next day and she said the stand she wanted had broken in the move. I was upset because I could have gotten a stand if I had known. I asked her when she was sending money back for the rental of the stand that wasn't and she assured me it was on its way. I find out from my bride that she never got this money. I tried bringing it up and got a story every time and it changed every time.
Sometime before this her husband left her. I know that's hard but business is business. As a friend my husband and I were hearing stories from both sides of the marriage and we came to the conclusion that they were both telling lies. This is when I pulled all my stuff from her shop and decided not to send anyone else to her, but would stay on her about those last two. I really had no reason to think she would not do a good job.
Well when school let out and she had already closed the shop because she could not afford the shop with her husband gone. She would still call me. I decided that even though I could not work with her anymore I would at least still be there for her. Every call got increasingly hard for me. I felt used and taken advantage of. the times I would bring up the money she still owed my bride she would change the topic and blow me off. I couldn't trust anything she said. Then I find out she is moving. She is moving home to live with a family member. I figure this is the best for her and the kids. She tells me she does not have anymore weddings coming up so all is well.
At this point I feel that it was a good thing I washed my hands of her buisness. And even while she was moved I was getting emails that I can't tell the truth from a lie in them and decide to stop emailing with her as well. I never actually severed the friendship with her verbally just quit responding to things.
Now I find out from one of my other brides that she is leaving a bride hanging whose wedding is in three weeks. I don't know if there is any others out there that she has booked but she is no longer in the state and is not doing the weddings. Worst thing is I dought anyone is going to be getting money back at least not from her volentarily. I was so mad yesterday I tried to call her. See if she was going to at least make good or try to on any of these. Her number was disconected. Why am I not surprised?
What I hate is that I look bad for ever recomending her in the first place. I had good cakes that looked good at first. I don't know what happened, but I could not stop recomending her fast enough. One bad cake order and I quit telling people about her, but still others have herad about her from others. But they would not have heard about her still if it was not for me in the first place.
I have great cake experiances with several other bakeries and some of them have done multiple cakes with me, but I know other planners that have used them as well and so I don't hesitate to recomend them. I am willing to do what I can to help people get their money back, but know that its not much.
So officially I have severed my friendship with her and her buisness. I am deleating her from my facebook and myspace accounts.
Rest assured I am sick over this and no more recomendations just because they go to church with me and have a couple of good showings.