Ok, I fixed my forum node permissions.
As a Moderator, when I tested the BAN feature it took me to Xenforo Admin login page. So this works fine as the Moderator won't have the login info.
As a Moderator, when I tested the SPAM feature, the system banned the other Moderator and deleted all of his posts. This is not what I want the system to do. How can I fix this? Thanks