Thank you! The issue turned out to be I was entering the wrong username in the Forum Moderators textbox. I was using the WP Username (user_login field on users table) but when I used the encoded email address it excepted it. Eg. If the email was name@domain.com I needed to use name-domain-com.
Thank you Robin,
This is helpful. Will go with the front end approach.
Kind regards,
Joseph
Did you ever figure out how to resolve this. I have the same issue.