As an emerging and promising technique, device-free localization (DFL) has drawn considerable attention in recent years. By exploiting the inherent spatial sparsity of target localization, the compressive sensing (CS) theory has been applied in DFL to reduce the number of measurements. In practical scenarios, a prior knowledge about target locations is usually available, which can be obtained by coarse localization or tracking techniques. Among existing CS-based DFL approaches, however, few works consider the utilization of prior knowledge. To make use of the prior knowledge that is partly or erroneous, this paper proposes a novel faulty prior knowledge aided multi-target device-free localization (FPK-DFL) method. It first incorporates the faulty prior knowledge into a three-layer hierarchical prior model. Then, it estimates location vector and learns model parameters under a variational Bayesian inference (VBI) framework. Simulation results show that the proposed method can improve the localization accuracy by taking advantage of the faulty prior knowledge.