"When you report someone, or you are reported, a message is sent directly to Mr Lincoln that includes the chat logs of everything that was said before and after that report.
Mr Lincoln then reads the log and assess the situation. He determines how bad the offense was, looks up prior offenses for the reported individual, and based on that assessment he issues sanctions such as muting or banning and sends an email to the offending account explaining the violation and the sanctions.
If the report was falsely made, that is determined as well, and the player who made the false report is investigated as to whether or not they have made previous false reports. False reports are just a egregious as valid ones, and similar sanctions can be levied against repeat offenders of false reporting.
Everything that a player enters into the chat window is logged. These larger chat logs are also routinely checked for those infractions that are not reported."
So don't false report people especially if you're doing it out of revenge. As a general tip most people usually get frustrated and say stuff and others will usually let it slide unless people keep going on and on. So if you are the one losing it and you say stuff just count yourself lucky and keep your chats private. It's also smart of you to police yourself so that if you ever do have to report a nutty person that you don't get yourself punished in the process.
See you around,