It's simple... you file the lawsuit, you take him to court, you get him found guilty on fraud and theft charges, you get the court docs and then send them into RJ. They will then review to see if they have enough info to cover themselves when removing the individual from the site without risk of a lawsuit against them.
It really does suck but PJ and the crew have to protect themselves against these types of lawsuits and that is 100% smart business. That is why you have the user forums with a feedback and scammer "watch" section.