This will ease any feelings of "intrusion" they may have and if not, that's their problem. A

If you're going to be in the landlord business you might want to look into it.In my experience, a problem tenant remains a problem as long as they are allowed to.

High quality problem! A

The first person isn't a problem as a friend of the seller and is about to move as the third person is physically intimidating though only the second person is named in the eviction, for non-payment of half of the verbal lease agreement.  

The problem as a landlord is you don't have time to deeply analyze a criminal record, so you will never know exactly what happened.

You may learn to live with the problem as you can possibly get no rent.

In the meantime, here's an article from a law firm (with an office actually in your area) that talks about the possible penalties for loans at a usurious interest rate: CALIFORNIA USURY LAWS: What you should know before lending or borrowing money.When a loan violates the usury law, it's not a problem until it's a problem (as you're now finding out). 

The $7k penalty was abated with no problem, as it was a first time offense.

I don't understand because I tried to rectify the problem as much as possible by being on top of it and calling as soon as I knew. 

I don't think that would be a problem as I have a friend who has syndicated deals and personally signed for the loan.