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If someone copied another person's story, would FicWad do something about it?
Considering that they state in their philosophy (found on the Help page) that they won't tolerate plagiarism, yeah, I'd say they'd do something about a plagiarized fic - if that's what you mean by "copied".
Yes. Plagiarism, whether it's word-for-word, paraphrased or overarching original story, is punished on ficwad. As a matter of fact, I think plagiarism, blatand harassment and misrating are just about the only things that aren't allowed on ficwad.
I would, however, like to point out that we're taking plagarism in the literary sense, not the strict academic sense.

That is, if someone literally copies your story word-for-word we'll act on it, but if they just write a story with the same general premise and plot, we're not going to touch it.