hi Discount80 & welcome to webmasterworld,
sorry to hear about your troubles. have you changed all of your passwords since breaking the relationship with your vendor? make sure they do not have access to google webmaster central, your ftp, cms etc.
tedster makes a good point about going after it as copyright issue since there are many remedies available to deal with that. have you also checked to see if there are any 302 or 301 redirects going on?