My #1 AP attorney got caught up in a case where another client was found criminally guilty and the CA AG has taken a personal interest in punishing.

I mean no offense its just patently obvious. 

Not to mention forgery is a federal offense I believe. 

Please don't take offense, but if you are asking this question, then you should probably be using an agent.  

Other thing I learned is the city is criminally prosecuting the seller for not working on the place it’s been on the market a while untouched.

I am a middle aged guy (not in crisis mode yet, but heard it involves a fancy sports car, he he) and I feel like my life really started 3 1/2 years ago when I met the most beautiful and amazing woman in the world (no offense ladies).

You can insure against this.A partner/principal can be bonded against other risks, non-performance for any reason, like disability, criminal acts, bankruptcy, or just bad management, that may be expensive and not worth the arrangement, so you would have risks.IMO, knowing very successful builders and developers, about the only way to guarantee any promise is by pledging assets, other assets to attach in the event things don't work, and at a value sufficient to cover the obligation after the collateral is secured and sold.

So has he committed a fire-able offense by the contract?

We look at job history, if they bounce- they will probably bounce... we look at last addresses... evictions, criminal...

None of any criminal background and they rented their previous place for three years.