I think you put yourself at great risk instead of reporting the guy doing something he obviously shouldn't be doing.
See this is the problem with admin enforced caravan rules, there's always some jackass trying to push the envelope.
IMO just drop the silly caravan rules, or change the caravan AI to respond accordingly, or make reputation loss more effective and change the 5000 cap auto reputation resettler, or something.
I know why kil put this rule in place in the first place but surely he is creating more work for himself doing it like this.