When someone creates multiple accounts and we have already responded to one of them, we don't find it necessary to tell him the same thing on another email address. He knows exactly why the account was closed, for abuse of our policies regarding fraud and multi-accounting. He is just trying to get back his deposit on this one, like he did on the previous one.
It was hurting the eyes to read the whole post LOL. You don't need the unnecessary formatting.
Since the user is still insisting, wouldn't it be better to give him some evidence to his response, hoping you are 100% sure?
And if an account is caught on cheating then should you really confiscate the deposit or just let it return to the sender?
Do a full KYC, return the deposit and close the account. This will look much better than the steps you took right now.