Can't reinforce this enough.
Would a bank hire a security company that has a previous bank robber on staff? Would you put your kids in a school that has a previous child molester on staff?
Would a bank hire a security company that has a previous bank robber on staff? Would you put your kids in a school that has a previous child molester on staff?
A more comparable analogy would be one where the hypothetical security company isn't told who of their staff is banned, or for what reason they were banned. Maybe they were a bank robber, or maybe they were just doing business with bitcoin, and it's the bank's policy to ban all such businesses. And the security company isn't just not hired - they're banned from being hired ever again, from 88% of all banks in the world.
That's what background checks are for. If you're hiring someone, it is your responsibility.
This wasn't a case of someone having had a previous developer account, but of someone having being banned for posting malware on the Play store.