What can we do regarding a fraudulant termite inspection and report?

We bought a home in Lakewood, CA from a flipper who had bought it at auction, cleaned it up, and made some upgrades (new windows, new kitchen countertops, etc). We did the home inspection and discovered termite droppings in the garage and had it noted. When we were signing the purchase/loan documents, there was a... show more We bought a home in Lakewood, CA from a flipper who had bought it at auction, cleaned it up, and made some upgrades (new windows, new kitchen countertops, etc). We did the home inspection and discovered termite droppings in the garage and had it noted. When we were signing the purchase/loan documents, there was a termite inspection report (which was commissioned by the seller) which indicated that a termite inspection was done and a treatment was completed by a licensed contractor, but it did not indicate any treatments done in the garage. After moving in (late March) and getting squared away in our new home, my wife noticed termite droppings in the garage (early May). As such, we attempted to contact the company that did the termite inspection and service numerous times via phone, email, website to no avail. We contacted our realtor and informed them of this issue, but did not get any real help from them. We continued to see termite droppings and continued to attempt to contact the termite company to no avail until late June, when we registered a complaint with the State Structural Pest Control Board and provided them all of the information that we had regarding the company.
A week after registered our complaint with the State Structural Pest Control Board, I had received a frantic phone call from someone who claimed to own the company that we had registered the complaint against and was eager to resolve the situation as his company was in good standing and he indicated that he had never done any type of termite service in our area nor at our property. It turns out that the "company" that did the termite "inspection" and "treatment" was a fraud and had fraudulently used another company's license number. The owner of the real company had evidently knew the guy and had worked with him before in a different company, but when the owner of the real company was approached by the guy that did our "inspection and treatment", he declined to work with him again. The fraud had used the real company's license number and tried to pass off his company as the real one.
Since this discovery, months have passed by, the Investigator from the State Structural Pest Control Board completed his report with the following violations:
1. Failed to report evidence of subterranean termite infestations, drywood termite infestations and fungus infections.
Violation: 8516(b) (7) Business and Professions Code
1990(a) (3) California Code of regulations
2. Failed to report evidence of excessive moisture conditions, cellulose debris and inadequate ventilation.
Violation: 8516(b) (7) Business and Professions Code
1990(b) (3) (5) California Code of regulations
3. Failed to report dryrot wood members and termite damaged wood members.
Violation: 8516(b) (7) Business and Professions Code
1990(a) (4) California Code of regulations
The Investigator informed us we should get some quotes to address the real termite issues in our home, which unfortunately were more numerous that previously thought after various LEGIT companies provided us with quotes. Unfortunately, our realtor has not been of any real assistance in our attempts to resolve this matter and when we contacted the seller, he had indicated that since he thought he had contracted with a legit company, he was duped as well, and as such, does not bear any personal responsibility in our attempt to resolve this. This unfortunately does not hold water as in Sept, a gentleman who claimed to have been the previous owner (which was confirmed by the neighbors) who lost his home to auction came by as he wished to discuss with us the good and bad of the house. One of the things he had indicated was that the house did indeed have a massive termite infestation throughout the whole house (which was confirmed by quotes provided by the legitimate termite companies) and that he had informed the flipper from whom we had bought the house. This leads us to believe that as the flipper knew of the termite issues from the previous owner and had purposely sought out someone who would provide a cheap service, but have no proof to back up this claim. We also believe this to be true as the flipper should have noticed the termite issues when upgrading the home, but again, have no real proof.
Today, we stand 10 months after purchasing our home with no resolution at hand nor in the foreseeable future as our realtor has not been of any real help, the seller is claiming he was duped too and that it is our responsibility, the fraudulent termite inspector cannot be contacted, and the owner of the real company states that he too is a victim of fraud as his license number was used without his permission.
As for resolution, all that we want is for the house to have a proper termite treatment but no one is stepping up to help. Any advice? What can we do? Is there anything that can be done? Or are we up a creek without a paddle?
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