Honestly like your idea, Cloaked. :)
1. Offenders would have their names marked in RED.
2. Offenders would be targeted by Guards as hostiles
3. No vendors would talk to Offenders = no Phirius Tokens can be used since it's now a vendor
All of the Offenders would have to band together out in the wild somewhere and trade amongst themselves or whatever players, who aren't offenders yet, decide to help them out