And even IF there are violations leading to enforcement, the most common type of enforcement action in these violations is that the accused doesn’t admit to any wrongdoing but agrees to never do it again, LOL.  

This is standard business practice - just look up how many settlements the SEC makes annually where companies pay millions in penalties WITHOUT ADMITTING to any wrong doing.- Cash-for-Keys is another example of this!

No evidence of wrong doing but the landlord is currently in court processes for medical bills , ptsd , and a list of of things . 

Exonerated 4 times, $0 cost, and the last one paid a $500 settlement plus my attorney's fees with no admission of wrongdoing on a $15k suit.

What exactly happened, who did what, and should I as a wholesaler be responsible for wrongdoings of other wholesalers?

But sheesh that's just so sad and it does nothing but cause more pain and suffering for everyone else who isn't even involved and has to pay for the wrong doing of others, ie increased insurance etc.

The fact that they haven't been caught, or are unaware that what they are doing is wrong does not change the fact. 

Re-accomplish a new inspection so to rule out any wrong doing.  

@Juan Alvarez I don't think they have a rehab loan like that of the 203k, someone can correct me if I'm wrong. 

From experience, even if the tenant is in the wrong do you think they have $10k or even $5k laying around to pay for the repairs?