And the posters unwavering belief that somehow these Feds are going to drop all investigations, prosecutions, politicking, taking coffee breaks, etc. and jump on their complaints putting the “full force” of the Federal government down on the subject company and its managers and feed them to the lions.   

In my 9 to 5 job where I work with the Attorney General's office here in Michigan daily and someone who helped prosecute a low-income housing developer in California back in 2010 (which was when I got into real estate investing), knew back in December when the Attorney General in Indiana got involved with Ocean Pointe, this was all bad bad BAD news and would only get worse, which it did. 

The prosecuting attorney seem to be more in favor of tearing the property down possibly at the cost of 6500$.

Hopefully people actually do it or are prosecuted for not.

I help fund a large project out of the springs where it was bought prior to approvals but it was already properly zoned so it was just prosecuting the map under the given zoning and that still took a few years.

So of limited use for prosecution.

Not sure what happened with this case - hopefully he's prosecuted and convicted. https://www.biggerpockets.com/forums/49/topics/1168199-fraud...  

Everyone knows it, it's illegal, and here it stands, not 1 prosecution for such.     

However those who misrepresent their credentials or knowingly teach systems that do not work  can certainly be prosecuted and it's only a matter of time if the wheels aren't already turning in attorney general offices across the country for this to happen. 

I would NOT want to be the guy that owned “The Whorehouse” even if I was able to escape prosecution.