I don't want to make you more upset, but I also don't want you to have a rude awakening later. Etsy won't ban her. On her last sellers name, it took year, maybe even years, of us constantly reporting her listings where she was displaying photos she stole and was actually claiming that they were a "past creation" of hers. And so that you understand how far she takes it... She has works that are in the Met that she claimed were her own past creations. A gown on a Scarlett O'Hara doll made by the Franklin Mint was one of her past creations. She even had pattern covers, book covers, etc that she was claiming was a picture of a past creation. And it took Etsy forever to ban her.
However, on the upside, she never used Katherine's photo after Katherine contacted her. So... maybe she'll just stick with the ones from people who didn't?
Hope this stops being a headache for you!