Ok I Just launched The Buy, Sell or Trade Forum on my sig and i want to know if google can penalize me if our members Sell Warez , not sure if they would or how i could tell . but would it affect me?? Link : http://freepaypalmoney.com/forum
It is clear that AdSense policy does not allow Warez hosting, warez linking or anything related to warez. You're responsability to keep your members under your control. I'd say, deny the sharing of warez or warez buying/selling. Pretty much chance is that you will get banned from AdSense. *Although not sure if you have adsense on the forum even, did you mean Google search engine penalizing? cause your post is in Adsense section*
It will effect you. you are webmaster not member. you have responsibility for prevent illegal active.
Put a TOS that it is not allowed. If anything is reported and is against TOS remove it. You should be safe. This is more like a forum, I can post illegal links on DP, however, it is the responsibility of DP to take it off if reported, otherwise it is not their fault. Peace,