Where I live, it's a class 2 felony punishable with a fine of up to $5,000 and/or 2 years in prison.  

PITA, like I was being punished for being the one who caused the problem in the first place.Also, permitting took about twice as long as usual - violation cases here have a different series of reviews to go through (and the scope was large on this one).

The tenant can articulate with good reason before the court you unlawfully withheld the tenant's security deposit monies and prove the elements necessary for conversion/theft.

The filings I have done were, Summons in Forcible Entry and Unlawful Detainer,  Complaint in Forcible Entry and Detainer, Notice of Demand for Rent or Possession-completed and posted 4 days prior to filing, and Answer Under Simplified Civil Procedure. 

The 3 day period has expired and she has not paid the balance due so I filed an unlawful detainer with the court and served her and her husband with summons. 

And as for doctoring financials, I don't know about California licensing laws, but I'd bet misrepresentation is a punishable offense.

The case that the tenant was unreasonably and unlawfully damaged is stupid easy to prove, and is preponderance of the evidence standard.

Can they punish him if he refuses?

They can help the Soldier pay you or punish him for indebtedness, but they can't make him, and most CDRs and 1SGs aren't very interested in your problem.

I do see a few people that appear to be unlawfully brokering RE in FL, maybe that is the best reason?