I personally think that when you get to anything above regular league play then teh handicaps should be locked in all the way through nationals. Fine the league ops if they send teams over with wrong handicaps.
Won't comment on the situation at hand but such stories persist throughout the APA operation about people being arbitrarily moved up during tournaments.
First, when a player goes up, either by the software or by the LO, it is never arbitrary. How does it benefit me to pick a random person during a tournament and just raise their skill level? When someone tells a story about arbitrary raises, that should be your first clue that they got a taste of some sour grapes.
Second, if you lock skill levels, there will be the same number of stories, but they will ALL be about the sandbaggers who got away with it. The real sandbaggers WILL get away with it, and the honest players who just played a great match will be branded unfairly. You've done nothing to improve the situation.
Third, if you fine the LO for wrong handicaps (and here I'm inferring that by 'wrong' you mean 'low', because wrong on the high side wouldn't hurt anyone in a national tournament except those who were wrong on the high side) the stories will be about players who were "arbitrarily" raised just prior to the end of the session, and the "pyramid scheme" conspiracy stories would run even more rampant than they do today. Oh, and follow that process a little further into the future. Eventually, the LO who gets the numbers exactly right will get the fine, because everyone else will have their players so over-handicapped that his teams will have an easy time at nationals.
Fourth, if your only recourse during a tournament is disqualification, what happens when you suspect manipulation but aren't sure? The vast majority of players who go up during tournaments can handle the higher skill level, whether they were cheating or not. A skill level increase can solve the issue in both cases, but if your only recourse is to kick them out or let them remain at the lower skill level, you will still be making judgement calls and the consequences of being wrong get worse. Some cheaters will get to stay low and some honest players will get disqualified. More fuel for stories.
If nobody ever cheated (players or LO's) you could do it either way, right? If that were the case I would actually be in favor of freezing skill levels, AS LONG AS the skill levels could be reset at the beginning of each level. Given the time for improvement between levels, I think that would always be necessary, but during the course of each level a player isn't really going to improve by a significant amount.
Unfortunately, people do cheat, and they don't walk around with signs advertising themselves as cheaters. That goes for some operators, too. The best APA can do is give us the tools to protect our honest players from the cheaters, while at the same time protecting honest operators from dishonest ones. I believe there are fewer cheaters in both groups than people think, but I'm not naive enough to think there are none.
As for the stories? There will always be plenty of stories. Most teams will lose in a tournament and human nature will drive many of those teams to look for a scapegoat. I'll shoulder that burden. I can't prevent it, so I choose to embrace it, because I'm the one who knows what really happened. If you're looking for a bad guy, pick me. I'm good with myself.