Heirlooms of the elves

[doug*platypus]

what about those Elves that told lies and stole sweets from the shop

I think that the Undying Lands had an element of purgatory about them. If you wanted to live there, you had to obey the code of the Valar. So any bad elves eventually either went to Aman, in which case they were made to see the light and repent, or they stayed in Middle-Earth, and the Valar never cared about what they did, especially since they were just to fade away eventually anyway. Elves being less powerful than say Sauron or Morgoth, it would be of less consequence to let a few bad seeds roam the Hither Lands. Not that there were many to begin with.