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If I refused to run a game every time someone in my group had read the adventure for whatever reason I'd never run a premade. Suck it up and change some stuff it's all part of GMing. Did he read ahead specifically to cheat or had he read it before? I've read adventures that I've thought about running but didn't then ended up playing.
Bully/Loot: How does the rest of the group feel has anyone said anything or is it just side talk to you? If you have one guy bulling a large group of people you have a very spineless group of people. All loot issues should be discussed in game by party members. If they don't like it but let it happen then it's not the GMs place to intervene.
If you just jump to kicking a person from the group without reasonable discussion from all sides it sounds more like a personal issue especially when you consider you said you'd basically made up your mind to kick him before posting this thread. You posted here seeking validation from the like minded and likely gave little thought to anyone posting an alternative. Your thread title alone suggests a biased toward this player.
All too often GMs slip into a Me vs. Them mentality rather than remaining neutral and letting the dice fall. You win some you lose some.