Advantage Healthcare Systems interview questions

I met one of the directors via phone and he asked me to come in and interview with the CEO the following week. I was told he would be there to meet me in person as well, but when I arrived, it was just me and the CEO. At the conclusion of my interview, I received a verbal offer of employment with an agreed upon salary, was told that HR would be sending me a written offer letter/ new hire paperwork the next day and to call on the following Monday to establish a start date. I did not receive the paperwork the next day and reached out to them on Thursday to let them know. I did not hear back. I called Monday and was told that the CEO would call me back. I never heard from her. On Tuesday, I called and was able to speak with her briefly. I let her know that I never received the HR paperwork. She was surprised and immediately transferred me to HR. HR then sent me new hire paperwork but no official offer letter. I called back to ask if I had missed it or if it wasn't sent and he informed me that the position had already been "filled by a family member". I asked multiple times for the CEO to call me back and emailed both the director and CEO asking for clarification. The director responded quickly and said that "Yes, the position had been filled with a local SLP intern we had spoken to earlier" and apologized for the communication break down. Additionally, he said that the CEO "wasn't given the information in time when we met". (Please keep in mind he was the one that had scheduled both the phone and in person interviews). Because this miscommunication happened over a weeks time, I turned down other job offers because I thought Advantage Healthcare and I were on the same page with moving forward. I went to respond to his email about the position already being filled and he has blocked my email. I never heard back from the CEO.