I would not give their contributions extra attention (you should be suspect of all changes, regardless of the author) and I would not ban them from contributing unless they became disruptive or subversive to the project.
They served their time; you don't need to punish them further. They are probably even less likely to commit fraud when their employer is aware of a previous fraud conviction.
The worst fraudsters don't come with a "convicted of fraud" warning—they have evaded being caught and will seem just like any other contributor.
It is not about punishing them, it is about reducing the risk of others. Having served time is, at best, no indication of whether a person will revert to their former behavior.
> The worst fraudsters don't come with a "convicted of fraud" warning—they have evaded being caught and will seem just like any other contributor.
This is no reason for not using what information you do have.
Note: I see that you have edited your original post to address these points, but I think they still stand, as expanded on in the continuing discussion below. Your statement "they are probably even less likely to commit fraud when their employer is aware of a previous fraud" seems to be in agreement with what I have been saying.
- Small (and well scrutinized) patches from this person are fine
- At some point forgiveness is due, maybe 3 years is at that point depending on the severity of their backdoor