HELI FLC NOT ABIDING BY LOA WITH CVG APCH CTL USED DISCRETE CODE WHICH CAUSED A DATA BLOCK OVERLAP WITH AN SMT INBOUND TO A SATELLITE ARPT. SMT TOOK AVOIDANCE EVASIVE ACTION WHEN CTLR ISSUED THE HELI TFC TO THE SMT. CTLR RPTR WOULD LIKE TO SEE THE HELI DISCRETE CODE CANCELED UNTIL ITS COMPANY COMPLIES WITH THE LOA.

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HELI COMPANY HAS AN LOA WITH CVG TO SQUAWK A SPECIFIED CODE WHILE DELIVERING PAX TO AND FROM INDIANA. THIS DISCRETE CODE AUTOMATICALLY ACQUIRES A TAG; WHICH RADAR POS DO NOT HAVE CTL OF. THE PROB EXISTS NOW THAT THE HELI IS FLYING ALL AROUND CVG AIRSPACE ON DISCRETE CODE FOR PURPOSES OTHER THAN STATED IN THE LOA. THIS CAUSES UNNECESSARY CLUTTER ON THE RADAR SCOPE. THE COMPANY OF THE HELI HAS BEEN ASKED ON SEVERAL OCCASIONS TO COMPLY WITH THE LOA; AND WHEN NOT DELIVERING PAX TO AND FROM INDIANA; TO SQUAWK 1200; BUT THE PROB STILL PERSISTS. WHILE THE C421 WAS ON AN NDB RWY 24 APCH TO ISZ; THE HELI TAG ACQUIRED; AND THE DATA BLOCKS OVERLAPPED. DUE TO THE INABILITY TO MOVE OR ADJUST THE HELI'S DATA BLOCK; I COULD NOT IMMEDIATELY DETERMINE THE HELI'S ALT. I ADVISED THE C421 OF TFC; HE SAW THE HELI AND TURNED TO AVOID COLLISION. I WOULD LIKE TO SEE THE DISCRETE CODE REMOVED FROM CVG ARTS UNTIL THE HELI COMPLIES WITH THE LOA. CLUTTER FROM THE HELI'S ARTS TAG HAS CAUSED PROBS IN THE PAST; AND SUPVRS AT CVG HAVE BEEN ADVISED OF THIS PROB.