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Several thoughts come to mind, one was a recent post that suggested many (most?) GFY'ers have felony records, I certainly hope that's not true.
Despite someone's past record of a single event, if I knew the person well (which clearly you did) I would have also been inclined to hire him, but keep a close eye on him.
Given he just committed apparently the same thing twice, your friend definitely has a problem. You can still be a friend and provide some support, but there's a serious risk to fellow employees and yourself (financially). So I wouldn't hire him again.
One problem that's growing in the US is the large number of people who've been in prison. More and more employers won't hire them, yet they still have a need to support themselves. Don't have a solution to this.
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