After that first meeting, I went and checked the county criminal records on him and he had just been released from jail where he was put for assault and battery.

There's usually prep work or repair involved.I'm not a fan of these rules at all and I think they're stupid, but the fine for first offense is $37,500.

Your landlord committed fraud, which is criminal.

The Department of Housing and Urban Development warned last week that landlords who refuse to rent to anyone with a criminal record are in violation of the Fair Housing Act and can be prosecuted and fined for racial discrimination. 10-page “guidance” issued on April 4, the federal agency announced that any landlord with a blanket policy of not renting to people with a criminal conviction is effectively discriminating on the basis of race or national origin.

My personal system is pulling criminal and credit through my company, then I do the screening myself.

You really think I can't deny a loan for an unemployed criminal?

No offense but I assume you don't have any loss prevention training or experience, and I assume you won't want to take on liability if something in my house does go missing while you show it. 

I have a clause in my lease that states criminal activity is grounds for eviction and does not require conviction in court.

No criminal background or activity.  

No offense meant but your job sounds a bit like a MLM gig.