He is currently in possession of stolen Bitcoins from the Linode hack and any coins purchased from him will not be accepted by MtGox or anyone in the Bitcoin community.
I wasn't aware Mt. Gox retained the right to pick and choose which Bitcoins they'll accept. Where can I find their policy on this? What happens if I transfer them coins they choose not to accept? How can Bitcoins remain useful as a currency if people start picking and choosing which coins they'll accept? This increases everyone's risk when accepting Bitcoins to intolerable levels.
Members also agree that Mt. Gox may, in its sole discretion by giving notice, terminate Members' access to the Site and their Account, including without limitation: limit, suspend or terminate the service and Members' Accounts, prohibit access to the Site and its content, services and tools, delay or remove hosted content, and take technical and legal steps to keep Members off the Site if we think that they are creating problems or possible legal liabilities, infringing the intellectual property rights of third parties, or acting inconsistently with the letter or spirit of these Terms. Additionally, we may, in appropriate circumstances and at our discretion, suspend or terminate Accounts of Members for any reason, including without limitation: (1) attempts to gain unauthorized access to the Site or another Members account or providing assistance to others' attempting to do so, (2) overcoming software security features limiting use of or protecting any content, (3) usage of the Platform to perform illegal activities such as money laundering, terrorism financing or other criminal activities, (4) violations of these Terms, (5) failure to pay or fraudulent payment for Transactions, (6) unexpected operational difficulties, or (7) requests by law enforcement or other government agencies.
This might be relevant as well.
Members acknowledge and agree that their Account may be suspended until they provide Mt. Gox with documents evidencing their identity and/or any other information that Mt. Gox deems necessary to secure the Accounts, the Transactions and/or the Platform.
Source:
https://mtgox.com/terms_of_service