I don't think Gears was actively playing in a game when everything with them unfolded, so I didn't have to work with any IM or GM on what to do. If they were in a game....um. Sorry to the GM and IM for not discussing with you? Assuming I'm right, and they weren't playing, if they had been in a game, there was time enough while the staff was "sleuthing" to keep the IM and GM in the loop and determine how best to proceed in light of the imminent ban.
That's actually the case for most bannable-offense situations - there would be time to work with the GM/IM before the ban ultimately happens, even if it's just a day or two. Even when someone has broken the rules egregiously enough to warrant a ban and it's obvious to all the staff that the person should be banned, we still like to PM or DM the offender to discuss the offense privately. In some rare cases, if the offender is suitably chastened and promises to never ever do anything like it again, they might not be banned, but more akin to "on probation." But like I said, that's rare for the really egregious offenses.
For example, in Gears' case, it wouldn't have mattered what they said in a PM - they were getting banned regardless. But Eric/Chaos still PMed them, and the staff also thoroughly discussed that entire situation.
Ultimately, if the offender ever happened to be actively playing a game at the time of the report and a ban was determined to be the best way forward, the 17th Shard staff (or more likely, me specifically) would work with the GM and the IM, but the game would not affect the staff decision nor would it control the timing of a ban.
Also, since this question wasn't answered:
The report should be mentioned in the SE Admin channel on the server, which I and several other 17th Shard staff have access to. Whichever staffer noticed the report first would take it to the 17th Shard staff in the other server to discuss there.