AMHERST – The local mother of four whose 2005 invention showed promise in preventing ear damage in children by limiting the volume of MP3s and other devices is currently embroiled in a lawsuit against Milford investor Rob Finlay.

Christine Ingemi, 43, claims Finlay threatened to breach their marketing contract, destroy her product and sue for her company if she wouldn’t comply with his sexual advances, according to court documents filed in connection with the case.

Finlay is the owner of Milford-based R.J. Finlay & Co. He was featured prominently in The Telegraph’s Sept. 22 business section as the subject of a feature story, but could not be reached for comment on this story.

Ingemi, who invented the volume-limiting device iHearSafe to allow her 10-year-old son, who is autistic, to safely listen to his MP3, said the deluge of inquires that followed prodded her and her husband, Richard, to further refine the product and begin marketing it nationwide.

The device is particularly useful for parents of autistic children, Ingemi said, because it allows the children to use earbuds and headphones to tune out “sensory overload,” a common condition among children with autism.

By 2006, Ingemi formed Ingemi Corp., selling thousands of iHearSafe devices through the Internet and signing a licensing deal for 100,000 units with a Canadian company, she said. The product soon gained national recognition, leading to dozens of stories and segments in the media and appearances on shows like CNBC’s “The Big Idea” and The History Channel’s “Modern Marvels.”

Ingemi also received a commendation from Gov. John Lynch and traveled the country as a keynote speaker at business and invention conventions.

But in 2007, things took a turn for the worse, starting shortly after she entered a contractual agreement with Finlay and his former company, Hillcrest Management, now R.J. Finlay & Co., on the advice of her then-attorney, Joseph R. “Jay” Maiona Jr.

“I had gone into debt paying for the product’s development,” Ingemi said. “By then, the product was just about ready to hit store shelves, but I needed funding, an investor, to get it there.”

Ingemi said Maiona convinced her that Finlay’s company, by virtue of its resources, business and marketing knowledge, and interest in the product, could make iHearSafe a huge success that would provide very lucrative returns for her.

She and Finlay signed the agreement; Finlay created iHearSafe LLC, adding it to his company’s portfolio, and made Ingemi a company employee, she said. “I was told I’d get $1 million up front, then $3 million in (projected) sales,” Ingemi said, adding that her duties would include attending trade shows, marketing events and otherwise promoting iHearSafe.

But in 2008, shortly after her employment began, Ingemi alleges in the suit, Finlay began making repeated sexual advances toward her, including unwanted touching, which she states she rejected. Finlay’s attorney, Kevin Fitzgerald of Manchester, couldn’t be reached for comment.

On one occasion, lawsuit documents state, Finlay and Ingemi were flying to New York in Finlay’s private jet to meet with his business associate, Robert Dilenshneider, when, Ingemi alleges, Finlay made sexual advances toward her and said that if she didn’t comply, he would not sell the product and would destroy it, sue her and take her company, documents state.

In April 2009, Ingemi was sued by Finlay’s iHearSafe LLC for breach of contract and the company moved to place a lien on $150,000 of Ingemi’s money, documents state. Finlay’s managing partner, Dan Monfried, signed the complaint and motion, they state.

“Apparently he followed through on his threats,” Ingemi said.

Ingemi filed a countersuit and crossclaims against Finlay, iHearSafe LLC and Hillcrest Management, charging fraud, breach of contract, specific performance, intentional misrepresentation, negligent misrepresentation, wrongful discharge and assault, among other, more general charges.

Monfried was also named in the suit, documents state.

Finlay’s website, www.rjfinlayco.com, describes the firm as “a holding company of diverse businesses and investments with a central focus on real estate.” Its portfolio no longer includes a listing for iHearSafe LLC.

Trial on the suit and its cross and counterclaims is currently scheduled to begin in February 2011 in Merrimack County Superior Court, documents state.

Dean Shalhoup can be reached at 673-3100, ext. 31, or dshalhoup@nashua telegraph.com.