I think more letters are needed here. I see someone said that Magnus ordered twice-daily reports of TO actions? Is there a message to support this? Is that one message Stabbity gave the order in question? Are there any more to support it?
Also, as Evi says, whether or not punishments were actually given is irrelevant in determining whether or not something is a violation.
Also also, fines cannot be canceled. Once a fine is given, it cannot be retracted and must be paid. The best you can do is give them the gold to pay it.