Perhaps I'm missing something, but what is the conflict of interest? How exactly does Blazed benefit by adding people who share trust with one another? You raise some valid points, but I don't really see what he stands to gain from this.
If certain people are leaving Red Tags for certain business practices, but neglected to do so for Blazed, he benefits by way not avoiding the Red Tag, regardless of if these people are in DT or not. This cannot be disputed.
If you believe those listed in the OP are still selling forum accounts (you cannot dispute they traded them in the past, or attempted to do so in the case of Lauda), then the ability to Red Tag others engaged in similar business would be indisputably beneficial to those listed in the OP, and as such, Blazed may be receiving a portion of the profits. In other words, Blazed may be selling the ability to Red Tag the competition.
If you reject the above, it is very difficult to dispute that those within Blazed's trust list all have an abnormally high number of ratings from each other, so DT2 spots may be being sold, and purchased by those in a trust farming ring in an effort to make certain signature/bounty campaign managers appear more credible/trustworthy than they really are.