The question I have...is whether he could be looking at jail time. Hit and run...rear ending a cop...injuring a cop....DUI..etc.
If he gets sentence to serve time....then, you dump him. If he pleads down to probation...you fine him and put him on a last chance agreement...and move forward.
The guy turned 40...partied hard and F'd up. Does he have a history of such behavior? If not, then you don't just dump him....unless he goes to jail!