Xbox Live RS Keeps Sending False Notices Of Enforcement & the Community Volunteers Breach...

As you are taking this down a legal route, you should contact Microsoft Legal Services

Unfortunately, Xbox Support, the Xbox Ambassadors and this forum aren't involved in the enforcement process. All you can do is report somebody if they're breached the Xbox Live code of conduct. If they have falsely reported you then you have nothing to
worry about. The enforcement team will investigate the report, if they find you've done nothing wrong then nothing will happen.

Xxj3n71eq0hnxX, some of your questions have been answered (such as the M, V, X) but keep in mind, Xbox LIVE does not use Moderators for Xbox LIVE itself.

Microsoft employs a specific group known as the Xbox LIVE Policy Enforcement Team. They are the only ones who enforce the Terms of Use and Code of Conduct while on Xbox LIVE. The Community User Level (CUL) on Employees of Microsoft will only be an "X" (from
the Forums).

Moderators are to the Forums only and are volunteers. They do not work for MS and only enforce rules and activities on the Forums.
The Community User Level (CUL) on a Moderator of the Forums will only be a "M" or "V".

If someone harasses you on xbox live you can report that person from the console and block him/her from further communication. Retaliating is a breach of the code of conduct and object to enforcement acts

Ambassadors cannot ban, or suspend anyone. They are community volunteers.

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You can send a report to an Xbox Support team member, and you can also use the File Complaint system. I advise you and your friends all file a complaint so it will get the attention of the enforcement team.