His account can't be banned for things he did offline. I do agree with working with TO's to not let him enter tournaments, since that seems to have been what worked for PB&J.
Also, as I said in the PB&J thread when it came up, don't loan anyone any sum of money beyond like $5. Chances are if you are loaning them any large sum ($20 or more I would say), then they likely have no means to repay that sum since they didn't have it in the first place. It also brings up the whole problem of getting the money to you and such.
Still, this is ridiculous, how did you guys even get conned into loaning someone such large sums ($200)? Half the blame lies with the people who loaned him money for falling for it, as awful as that is to say.
Stop saying to sell illegal substances/stop the inappropriate comments people. If this thread can't stay civil/productive it will get closed. Figure out what tournaments he wants to go to, what TOs you need to contact about the situation, and who is owed what sums of money and document the date of the expense.
Alex: I'd suggest you not let him enter APEX until someone says they actually received money from him. Clearly his word has not been worth anything to this point. I believe this is the route you already plan to take but I wasn't sure if by action you meant words or real results (hopefully you meant results).