As stated there is no report option for botting, they could however open a ticket. I'd just delete the ones you don't want to play with. I have a few friends that know I bot on my friends list, the others just think I play alot.
Set it to pick up blues in trinity config, then go to Items > Scoring/TownRuns and in the Salvage Options set Magics to "All Levels". To make it salvage all rares tick the box next to "Salvage all Rares" which is the 3rd box down in the 4 box list just under the salvage options.