Mercury, lord 10 is Rx. in secretive Scorpio and under Sunbeams, which suggests secret activity. Sun on lucky FS Spica, on the cusp of House 11, is the last one aspected by the Moon. It rules the 9th house, 12th from 10th of the boss’s secrets. Sun just separated from Venus’ contrantiscia. Venus, Saturn and South Node are all in the 9th, too.

The 11th house is the 2nd from the 10th, signifying the resources of the workplace or the boss.

Mercury is cnj FS KHAMBALIA suggesting “swift violence, changeability, and an argumentative nature.”
“Khambalia is very much a star of the penetration of secrets. Denotes those good at applying intellect to deep research of any kind, to police type investigation, espionage and also to such pursuits as alchemy and the esoteric in general.”
http://users.winshop.com.au/annew/Khambalia.html

Maybe this chart is even more informative and complex than what meets the eye.

One important detail you might want to consider is the fact that Moon (liquid), Lord of the deadly 8th house, being inside the 1st house of the querent’s body is conjunct some interesting fixed stars :

1. Ras Alhague – Trouble with women, drugs, poisoning, hallucination, medicines, infections, mystical healing.

2. Lesath -Scorpion’s Sting (with Shaula)- Danger, desperation, immorality and malevolence, connected with acid poisons, accidents, catastrophes, operations.
(source: http://www.astrologycom.com/fixedstars.html#Sagittarius)

Since Mars Lord 12 is right at the cusp of the deadly 8th house, and Moon is on Mars’ contrantiscia, inside the 1st house, it might sugget the presence of acid poison inside the querent’s body, secretly inserted by the “hidden enemy”.

It’s also interesting to note that Mercury Lord 10, signifying the job and the boss, is Rx. in the 11th house, in Mars’ rulership, in Jupiter’s term but in Venus’ detriment. So, it looks like the boss indeed favors the querent and dislikes the suspect. Then again, why does Mercury adore Mars so much, being in so many of its dignities, and what is he trying to hide, being Rx. ?

Venus, the suspect, on the other hand, exalts Mercury, the boss, meaning she put him on a pedestal and nurtures the illusion that he loves her too.

Jupiter, the querent, is in Mercury’s detriment, although in mutual reception with it by term. I think the querent and the boss have a good working relationship, but no more than that, as the querent doesn’t like the boss very much, so the suspect has no reason to be jealous, and she is practically hallucinating.