I would find out who they were and prosecute them to the full extent of the law if at all possible. 

And yes, I know of prosecuted and convicted cases in my state.

Hi, well we all have opinions, all I can say is that having been a law enforcement officer through a federaol government entity, I would turn the matter over for prosecution and that perosn could explain how idependent the two transactions were within the time frame given and the documentation available from the property being advertised for salethe listings (if any) the contracts and the HUD-1.

The better question to ask is "Will I be prosecuted for soliciting pre-foreclosures in Washington State".

AG cracks down on 133 O.C. loan modifiersAugust 12th, 2009, 11:31 am · 45 Comments · posted by Mathew Padilla(Clarification: Exemptions added.)Attorney General Jerry Brown today ordered California companies that promise to help people avoid foreclosure to immediately post $100,000 bonds and register with his office or face criminal prosecution.

However, we may have to wait until a complaint like this is brought up, prosecuted, and the result of said prosecution made public. 

What I learn is if the state finds out about it, I'll be imposed a severe fine, and have the state license to operate revoked, besides criminal prosecution.

They could recommend that you be prosecuted for loan fraud?

It may work once or twice but you will get caught and you will get prosecuted for working without a license.

If you take out an FHA loan but you don’t meet the residency requirements, you could end up being prosecuted for fraud.