Good morning.
In this case, you should use the pen name. When citing, you should use exactly what was listed in the publication as the author. Also, if it is his/her wishes that the pen name be used, I am not aware of any law that requires you to go against those wishes.
The whole purpose of citing is so that your readers can locate any information in your text which they would like to know more about. If they are searching for this author, you want to provide them with the name that is listed in his/her publications.
I hope this helps.
Regards,
Gloria
Moderator, EssayForum.com
Gloria, EssayForum.com