In Too Deep by Jayne Ann Krentz

In Too Deep: Book One of the Looking Glass Trilogy (An Arcane Society Novel) - Isabella Valdez is on the run from her past boss.  He has framed her for the sale of illegal arms.  She has fled to Scargill Cove in Northern California where Fallon Jones has moved the headquarters of Jones & Jones.  Fallon is himself the target of rumors and innuendos about his sanity.