Previous owner was taking money under the table with section 8

[Ryan Cleary]

I purchased a duplex.  The seller provided a phony lease for $1,071.

I come to find out that the tenant was section 8, the real lease that section 8 has is for $867.

We have now found out that the seller had a promissory note and the tenant was paying the difference every month without section 8 knowing.

What are my options here?  This seller has been a nightmare and it has been one nasty surprise after the next piecing together all the sketchy things the previous landlord has done.