Where can I look to see what teams are recruiting what players. And also if I use illegal recruiting can a team be banned from playing in tourneys?

Just like in real life there is no way to know who each team is actively recruiting. If you've purchased the right scouting reports, teams that a player (who is on your watch/call list will) is most interested in will be revealed.

Teams offering bribes (both AI and human controlled) run the risk of the NCAA imposing penalties (e.g. prohibiting participation in post-season tourneys, loss of scholarships). Sometimes you're caught, sometimes not.