I'm no expert, but could you/should you be getting legal consultation or representation regarding the possibility of someone trying to steal your work and/or fire you if you don't cooperate, or even fire you if you do cooperate?

Sounds like a sticky situation. Have you thought about looking for something else that might be "safer" and quitting what seems to be a risky position? Of course I know that may be very much impossible given the current state of employment in this country.