Wait, how is someone charging back after joining if they paid more than $1 to join? Are people really that stupid that they don't look at the dollar amount they're being charged?

But... that issue aside, I'd say there's no question you just terminate the affiliate. If you've asked once, and he's still doing it, and you have reason to believe that the current deceptive promotion started after he was warned, then it's really a no-brainer. You don't need people like that promoting you, because they'll just create bad word-of-mouth for your network among surfers.