And document everything. You did the right thing in calling your L. Are they experienced in these kinds of situations? Or just regular non-nutty Ds? You might spend some time on the MLC forum-- Gerda's situation comes to mind-- these MLC-ers will do things that are absolutely beyond the capacity of a normal human being to understand.
It may be time to buckle up and protect yourself. That may be separate from standing-- your M1.0 is dead now, a business deal gone wrong. Work on extracting yourself as safely and cleanly as you possibly can while remaining there for your stepchildren. That doesn't mean that there isn't a chance for M2.0 down the line. But right now, you need to protect yourself financially. Unfortunately, you may be only seeing the tip of the iceberg right now.
You can do this, Elbereth. It $ucks and isn't fair and makes no sense and all the rest. You've done such a great job of detaching your actions from your emotions... just keep moving forward.
(((Elbereth)))
Me (46) H (42) M:14 T:18, D9 & D11 4/19 - 12/19: series of escalating BDs 9/20 - present: R and piecing