Her bank refunded her and the police said it was fraud but my tenant has not been arrested. 

I am not saying it is true here but not every criminal is arrested and not everyone ever arrested is a criminal.

(BTW: Medical marijuana arrested the growth of our Maltipoo's cancer in 3 1/2 weeks. 

Maybe they could if a certain time period had lapsed with no arrests, maybe depending on the crime, etc.I would suggest calling the real estate board in Harrisburg.

Cops ride the bus every weekend evening handing out $50 tickets for barfing and arresting underage drinkers - still drinking!

People tend to take it personally when you evict them; turn them down for a rental; have their Section 8 cancelled; have them arrested for drug activity; etc.

I hope not.Regardless, it is fraud as Josh and Jon have both informed you and not only can the mortgage company call your loan due, they can also have you arrested for fraud.When investing in RE, get investor loans, be honest, and do not buy if the numbers do not work without you cheating!

I did a quick criminal background check while she was on the phone, and discovered that the boyfriend had a extensive criminal history including a felony for receiving stolen property; drug convictions; and was just recently arrested for carrying a concealed weapon under disability (because he's a convicted felon).I told the woman that I couldn't rent to her because her boyfriend didn't meet our screening criteria.

I don't drink, I don't smoke or do drugs, have never been arrested or in trouble with the law, and I am currently working on my Ph.D. in Chemistry at a top University.

I am assuming that these investors who got arrested were allowing the homeowners to stay in their homes?