I think you guys should just let it go already. People make mistakes and I'm pretty sure he learned from it already.
Pictures and law enforcement is over board if you ask me. The buyer made a big mistake by not asking for pics and the seller made a big mistake by sending the item with water.
They both are at fault in some way and I think they both should work this matter out privately.
Its simple... If you don't like this guy and what he did then STAY AWAY FROM HIM! Its kinda like that snipersps thread. Everyone started talking crap about him on the thread but, As soon as he posted and told his side, everything turned out to not be as bad as the thread starter posted.
I dont know this guy Mattmike and can careless about him. I just don't think something like this should prohibit us users to be able to purchase and trust sellers here.
Another thing that I don't agree with is banning him from the SFVR club without hearing his side. Lets remember that its us reef hobbyist who make our clubs. Did he do anything to the club to get terminated? If so, Then yes terminate him. If not, Hear his side.
I hope they both learned a valuable lesson here and make better decisions when making a purchase on RC.