No, that is not correct at all.
Yes, the posts may disappear and there may be a temporary ban, but it would not be a permanent ban.
Green names can't report posts in any case, so it would take a little bit of organising.
Starting a thread has nothing to do with it - you can report a post within a thread, by emailing the ed, or reporting the whole thread, regardless of who has started it. The thread is read and the offending post removed. That is how it is supposed to happen, anyway.
Don't forget the editor and moderator can see IP addresses - he or she would quickly see that all the reports are coming from the same IP address.