They (or someone on their side/family) would need to pay for their prosecuting attorney.

You can report him to Section 8 and that will get him kicked out as a landlord but I doubt they will prosecute.

It turns out that the gentleman has been prosecuted and involved in civil cases dating back to the 1990's for false representations, working without a license etc.

I have searched all sorts of forums/internet and can't find any information on if it is likely I will be prosecuted for selling my home short of the 12 months. 

If they don't pay maybe you put a sign in the lanai near their door saying private property of unit xyz, trespassers will be prosecuted.

You don't need a victims consent to report a crime and prosecutors don't even need a victims consent to prosecute, although it is much harder to win without it. 

Technically you're right it's kind of a grey area but I never heard anyone being prosecuted for such a thing, it's just marketing... turn on your TV and you're gonna see way worst "false advertising". + keep in mind that the added benefit of being a wholesaler is having the first pick at discounted off-market opportunities, any solid players I know would buy rentals and flips as well. 

The problem is the relief is going to the tenant..not directly to the landlord.That's terrible and likely considered fraud against the government, which she can be prosecuted for under the False Claims Act, among other laws. 

It takes the following actions to go through the "Legal" prosecution process.- Catch them (cameras) both breaking and entering the unit.

Lies on mortgage applications are considered to be banking fraud.4 They can trigger severe financial penalties, prosecution, and even prison time if convicted.