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I would doubt it was ratio related alone. I send a few sites traffic at on average 1:3 or so. I do not send many joins per day like he did. Ratio may raise an eyebrow and get you investigated though.
Looks like they found something else that the legal department had issue with. Then the OP also stated he was selling 1$ trials and many people were cancelling before 3 days had passed - his assumption. Which I think hints at the situation.
On flip side Google recently got ass handed to them in small claims over terminating someone without giving the reason.
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