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First off, kudos for trying to help.
I work with youth (and have for years) through the Scouts. Something I highly recommend is that you should never be alone with this (or any kid under 18) that is not yours. I've seen way too many instances of kids in trouble making up stories that have to be investigated.
I agree with approach of giving him purpose to work toward or helping him find that elsewhere. I also agree with working this through one of the other family adults in his life.
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