Interesting, I have a little different take on it - once the individual or club has been reported and EA has done an extensive and thorough investigation and the accused is determined to be in violation, immediately ban them for life and disable their device so that it can not be used for this game ever again. Yes they can buy another device and start playing their feeder city, but it will cost them real money to cheat.
EA needs to change their policy and tell the world (without mentioning the name - liability issues) that a mayor was found to be in violation and this is what action was taken. It would go a long way toward building the confidence of loyal and honest patrons.