Any advice- Renter is part of a scam and not paying rent, now trying to extort $$

[Allison Levine]

Hi,

I am an accidental landlord, was part of an inheritance. I have a management company. Tenant started around 6 months ago, was paying on time and then they started with being late then went to bouncing a check to not paying.  Found out that everything the way it has played out and the details I have dug up on the tenant this is part of a an elaborate scam and includes a circle of people involved. We have filed for eviction and the tenant has filed a law suit claiming false allegations. They are suing me, the management company and the owner of the management company personally. I believe they expect us to rollover and let our insurance company handle it and just settle. I refuse to do this.  They will just move on keep doing this to others. 

Has this happened to you or anyone you know?  Would really appreciate anyone's insight or experience in this. I am in California.