Yes, the names are close, but if he has had it for a long time like Tadgee says, and the Bilbo who is staff doesn't care, then there is no reason to punish him.
If Bilbo isn't okay with it, we might ask him to change his name slightly, to avoid confusion. But in cases like these, it is not ban/warn worthy.
If I see Bilbo today I will link him this post and see if he is okay with this guy's name. If he is, cool. Nothing that we have to do. If he isn't, I'll find the guy and ask him to slightly change his name.
Denied.
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