Excluding a coauthor based on data misuse and misrepresentation?
If the misconduct in question tainted the data itself (and not just subsequent uses of that data), then the paper itself is fundamentally tainted and should be reworked with non-tainted data. If the data isn't tainted and it is a result of this person's work, then they deserve credit. Proper credit has to do with your intellectual honesty, and not the merits of the person receiving the credit. Having said this, I don't think that this necessitates including them as a coauthor -- but I don't see how you could avoid at least acknowledging them by name.