He didn't want to refund the full amount of which Handi scammed, which is understandable to an extent... but also if you take into consideration he employed a worker who was in fact 'TWC' ranked then he is at fault.
Mio made the correct decision in banning him (until the debt of which he now owes it paid), to prevent Rekt (not saying he would, I like the guy) from attempting to exploit other members of the community.