In the military when a Marine violates the standards/code of conduct they're demoted.

For example a Sergeant (E-5) who willfully breaks the code can be demoted to Private First Class (E-2) if the infraction warrants that type of punishment. They're not Dishonorably Discharged but the striping of rank is a pretty significant deterrant.

I know a user can be banned for spamming or scamming but say that User is FULL MEMBER can they be busted down to a Newbie?

In effect devaluing their accounts to the lowest level and giving them a chance to redeem themselves if it is merited.

Just wondering.