Problem with AppleID and iCloud account

Hi guys,
I hope that you can help me with my problem.
I gave my Apple account to a friend with new iPhone 4s (mine is iPhone5) because he was waiting for his new credit card to make his own. After he got his credit card he made his own Apple ID, but unfortunately mine is a mess now including iCloud account. So basicly the problem is this:
1) when i try to update or download an App on the store i have to enter my password for my apple ID but it's changed
2) somehow the verifying email on my iCloud account is not mine e-mail but his and in the verification e-mail it's his name written on top ( Dear Mr. Peter...)
I tried to remake my account and it worked with the exact same email adress and password as the existing, which tells me that the old one was "simply" erased
But now when i try to download app that i previosly had on my device it tries to download it from iCloud which i can't verify. So now i don't have iCloud, if i delete the old one it deletes my contacts (i restore it from an earlier backup but it restores the iCloud account again).
So can i make new iCloud account and somehow keep my contacts and erase the old iCloud account so i can download the apps again.
Thak you in advance and i hope you can understand what my problem is

Your first mistake was letting someone else use your Apple ID. That's like giving out a credit card number and not very smart. I think your best bet is to call Apple and ask for Account Security in order to straighten this out.

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