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Call him in for a talk and tell him about the evidence you have (but maybe not all of it). Then tell him you don’t want to hurt his career and that he should quit so it will not look bad. This way it looks like you are tying not to hurt him. If you are contacted by a future employer of his just say he was an “OK” worker and nothing more. This is the easy way out.
Otherwise just tell him you know about the shit he is pulling and fire him. Have a witness with you in the office when you fire him and let the chips fall where they may..
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"Anyone who would trade their freedom for safety
deserves neither freedom or safety."
-Ben Franklin
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