Why is LL not taking action against someone in SL that is scamming people out of their L$?

[RandilynAvari Nikitin]

WHiy if someone is reported for stealing and committing fraud in SL, is LL not taking action and banning this person from doin business in SL?

[Rolig Loon]

How do you know that LL is NOT taking action?

When you file an Abuse Report, your connection with the report has ended.  LL will send you a message to acknowledge receipt but they will never tell you the outcome of their investigation.  If they discover that there has been a TOS violation, they have several options.  Banning is the most severe option, and is reserved for repeat offenders, people who engage in child pornography, etc.  Other violations of TOS may result in a suspension, in removal of offending objects, reversal of various transactions, etc.  If Linden Lab does not find that a TOS violation has occurred, or if there is inconclusive or contradictory evidence, they will not apply a sanction at all.

In any case, an accusation is not a conviction.  It's up to LL to decide the appropriate response.  Take a look at this old but still pretty good Torley video >>>

[valerie Inshan]

LL will probably take action if the report was documented enough (chat/IMs logs, pics if possible...) but they will not keep you informed of whatever the action they take (or not) is. It's against their policy to communicate on their investigation and decision. 

[Griffin Ceawlin]

I'm guessing that this in regards to the third-party L$ exchange that you posted about last night.

That particular exchange (please don't mention any names here) is not exactly a fly-by-night operation. They have been on LLs (now-archived) list of third-party L$ exchanges for quite some time.

If you have an issue with them, email LL with your concerns as the page that I linked to suggests.