I predict Google will come around and open up your adwords account again. Don't give up on it if, of course, you want their traffic. Were you running product listing ads (PLAs) as well?
The real issue (verging on comedic) is when they kill your keywords or ads, and then your volume drops to the level where they really ignore you thereby preventing you from getting the service you were (or wanted) prior.
Eventually the person's main account was banned. Last I talked to him he was creating a bunch of fake accounts and running cloaked campaigns. It was much easier for him to be non-compliant on Adwords than compliant.