Time for a player ban?

[Dick Danger]

I play at a home game that is usually made up of people that are familiar to me. Every so often someone will bring a friend and there usually isn't a problem. The max buyin is $100 so money shouldn't be a big issue, but the same guy has brought a friend twice, two different people, but he said they were both friends. The first time he brought a friend the guy went broke in less than an hour and then demanded his money back. He said if he didn't get his money back he was going to call the cops. Not wanting trouble we gave him his buyin back and told the regular that brought him to never bring him again. Now a few weeks later the same thing happens with a different friend. This time things got a bit ugly, and the host told the regular that he couldn't bring anyone else to the game. I'm not sure I get the scam if he trying to scam us, but a few us feel like its time for him to find a new game.

Thoughts?