1999 Ford Escort engine problems

Noticed that engine warning light was coming up on and off, changed spark plugs,wires, light would go off for a period and than come back on. I was driving down the freeway between 65-70 miles/hour when I hured a loud bang , pulled off the freeway, I had the car taking to a local ford dealership, service writer told me that the valve seat in the head had seperated and fell into the motor. He also told me that the 1.9 motor had a flaw in the head and ford motor company new about this problem for many years.

While driving , the car lost power and the steering wheel was hard to turn, after coming to a stop, we tried to start the car up again it bsounded like it wanted to turn over but didn't after a few tries it stopped making any noise. A mechanic said the engine blew and that it was a on going problem for this year and make of car. The engine was put in the car when we bought it, it was advertised as new so the previous owner must have had thishappen to them and knowingly sold us their problem. Please we need help.