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There used to be a an ad campaign that went something along the lines of "You've been released from prison -- now the real sentence starts". Ex-cons have it pretty tough, so helping him certainly buys good karma.
I think I'd have a long, frank discussion with him, however, and clearly set out your ground rules. And, if there was ever a breach of those ground rules I'd end it. Immediately. No second chances. You can't risk your business.
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