But, he is still afraid of losing his job, etc. etc.
Expect him to come to you several times in the next 24-48 hours, imploring you to tell him what you're going to do about this newfound knowledge. YOU OWE HIM NO ANSWERS on this issue. Feel free to tell him just that.
"You're really not in any position to be making any demands on me, are you?" might be one thing to say.
It will only dull your pain just a bit, but feel free to let him twist in the wind a little bit now.
