They feel by signing a purchase agreement with no intention to purchase is fraudulent.

Someone not buying under the LLC is typically doing so because it's cheaper/easier to get funding .... again otherwise they'd just buy under the LLC to start out with.The company's actions were wrongful or fraudulent.

I see some properties that could be absolute gold mines if it were too go that way, and if not it's a small cost to pay as a gamble.

It was out of state and with as small as it was I took a gamble and did not step foot in it until i owned it, but I had the local realtor go thru and do a video and a basic eye ball inspection and felt confident.

You can gamble on appreciation, but you aren't going to pay your bills or earn a good ROI on Milwaukee properties at that price point.  

I guess that's part of the gamble, though, right?

This is neither right nor wrong but a gamble that you and your husband need to agree upon.

Insurance is just a gamble. 

A few months ago Wells Fargo froze my bank account for over a month due to a ( what they thought was ) a fraudulent charge , therefore preventing me from making other CC payments for the month and dropping my credit score 200 points making me ineligible for a refinance or HELOC etc.  

At best its a semi-educated guess, at worst its gambling.