I find such methods to enter in conflict with RP indeed. But being a lawful myself, for the last year and a few months, I don't really waste much time about them. I put them on KOS, or warn everyone that he must be fined. I sometime put bounties too, but that is quite rare.
They'll die out of misery... Or, they will buy their shiny lil cap toy, which I will have an immense pleasure to dismantle