Seems harsh to ban him from the complete program for that
Don't know the details or if speculation is correct, but as a general rule, many if not all property's have a lot of influence over some program details.
Such as, some property's have been flouting the T&C in regards to reward availability and nothing happens, its simple math, the hotel is worth more to them then a members dollar/s...
If the rules the hotels are flouting create enough of a tumult or degrade program participation enough to make a difference then stuff may change.. but it all circles back to the DOLLAR.