Seller misrepresentation

Hi all, I bought a service business a little over a year ago. Turns out the seller may have misrepresented their earnings. I found out after closing that they paid overtime in cash and may have represented those cash withdrawals as part of their SDE, basically calling these cash withdrawals something else. The previous owner freely admitted to paying in cash for overtime and even suggested I do the same, despite the fact that it is illegal. The business is not as profitable as advertised and I believe I have overpaid for the business in part because of this misrepresentation. Anyone have experience with dealing with this kind of fraud? What kind of legal recourse might I have? It’s tricky since technically the owner is still available by phone call regarding the business but they are nearly 100% phased out otherwise. Essentially, all that is asked of the previous owner at this point is if an old employee comes back for a job, whether they are worth considering for employment, questions like that. However, the business location is rented from the seller. Appreciate any advice you might have and thank you.