If you have kept up with this particular friend so that you know his current situation, then you have not removed yourself from the moral dilemma. Glad you got out, and there may be other reasons not to turn someone in, but this is a bad excuse.
I should be clear, I haven't seen any of these people in many many years. The situation I've explained was how things were set up when I last had any contact with Colin. I haven't heard anything since, so I assume things are progressing more or less the same.
