People are such fucking losers. They need to copy your site because they can't come up with an original idea, do their own research and testing, and execute it on their own.
First thing you should do is DMCA the fuck out of his Hosting account and try to get control of his domains. I'm sure you can put together the evidence so it's warranted. If the guy is a moron, losing his hosting account may be all you need to do.
You should also get your boyfriend to track him down and kick his ass.
Am not advocating the guy or his douchebaggery, but it's the OPs mistake in the first place for getting in a guy, let alone a neighbor in her business in the first place.
I mean, getting some help is one thing, but letting him handle your stocks, talk to your suppliers, know your profits, your business model, your marketing plan is just asking for a kick in the groin.
All this without an official contract and no profit sharing is even more retarded.
This wasn't uncalled for but rather invited on her own.
As far as the DMCA is concerned, that would work only if the guy has copied her sites word to word and frame by frame. And using a similar public domain template won't count. Also, if he has merely rewritten product descriptions, that wouldn't deem fit for a DMCA notice as well.
There are plenty of loopholes when it comes to DMCA filings and eCommerce and if the guy is so hell bent on making her life miserable, am more than sure that he'd have taken extreme steps to protect his own ass by now.
To the OP,
What I'd recommend is going full monty on the guy. Market your business and innovate like crazy.
As guerilla said, you have to start doing what he's not ready to do.
Setup multiple sales avenues, open up new websites without any connection to the old ones except for maybe the CRM.
Lower your prices, increase your products. Talk to Niche blogs and forums. Discuss.
Setup a 24 hour complaint resolution premise. Most importantly, reach out to your existing customers.
And lastly, SPY on your neighbor. Maybe get one of your girlfriends to hook up with him, steal his source codes and business plans and hand it to you. Like they do... IN THE MOVIES! :cool2: