Good call! I know it's good to try to work with people and be nice but sometimes enough bullshit is enough and you have to drop the hammer on people that will not listen. Unfortunately I think that's why we lost n0m he tried too hard to make people happy and got frustrated. No fault of his own; he was a good guy doing his best but let's be honest ppl suck and ruin it for everybody.
Stay strict on this and other issues that matter. People may threaten to quit playing to hurt the player base but don't worry, they won't.
Oh, and if they get caught it costs a gold sub to change name before they can get out of jail. hopefully it's already set up that way I can't remember what it costs to change name but IIRC was a sub.