I hope this means that at one time your name, address and telephone number were the registrant contact details with the domain registrar. This means that there is a immutable record of the chain of ownership.
This would be helpful to your case.
Get a LITIGATION lawyer.
One that is clued in to internet issues if possible.
Now, some moves requiring an understanding of the internet that your lawyer can do with your assistance:
1. contact the domain registrar about this fraudulent transfer and demand a reversal. if this succeeds, make sure that only you are listed as registrant, admin contact, technical contact and billing contact. make sure that all passwords are changed. if more than one registrar is involved, contact both.
2. contact your former host and ask for written confirmation of your hosting history
3. track the dns records and file a DMCA takedown notice with every host she moves to. that should keep her real busy. at the same time, have your lawyer demand a complete backup, including the *databases* be held in escrow. this is to help you get the site back online later. they are not required to do this, but hey, they just might. wget will not get the databases back :(
4. contact paypal, they dislike being in the middle of fraud.
5. print hard copies of all your paypal transactions related to the sites before they disappear. you might need them to support litigation.