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Nope.
Nah. But I knew (ok, met a few times) a guy like that. He kept entering and winning a certain annual short film contest. Finally the organizers called him and said they wanted to give other people a chance, so they invited him to make the official promo film for the contest instead of entering. I presume he got paid for that but don’t know for sure. I half-remember that he also became one of the contest judges.
Of course not.
Not the whole sum, but a prorated rate based on their win rate should be furnished… But only depending on if it was a serious part of their income, or if the ban was clearly favouritism based.