I have completed the investigation.
The alt account has been heavily fined and warned.
If it continues to break the TOS the alt will be banned.
In case anyone does not know the terms of service regarding alt accounts, here is the quote:
" Limitations
(I) The maximum amounts of accounts per person
You may have multiple accounts only on those circumstances:
You do _not_ use your accounts to help one single account.
You may _not_ finance a lower power account with a higher power one in order to do damage to lower people using the higher account resources
You do _not_ use your multiple accounts to attack one single target. Your accounts may _not_ help each other in any way. You have to play each account as a single entity to ensure the fair play as opposed to your fellow commanders. The multiple accounts should not be used in any way that would have any connection with another account of the same person. This includes taking advantage of the superior power of a higher account to help or facilitate an action of a lower account or otherwise."
Terms of Service link
http://www.spaceo.net/terms.html