You're suggesting that:
1) Buyer finds a house he like, puts in an offer.
2) Buyer hires an inspector.
3) Inspector decides he likes the house, so writes a report including lies that the the house has extensive, yet invisible and unrepairable, damage.
4) Inspector waits for buyer to withdraw offer.
5) Inspector writes offer for house.
Seems far fetched to me. If an inspector wants to buy a house, there are better ways to find one than swindling their paying customers.
What am I missing? Is the inspector in question also an investor? Is the property a FSBO?