I’ll try to be succinct - you have tools to help people both in a professional capacity and a personal capacity. When you start commingling those interactions a

I’ll try to be succinct - you have tools to help people both in a professional capacity and a personal capacity. When you start commingling those interactions as an employer, particularly with those suffering from psychological issues, you are taking on potentially ruinous risks that get exponentially worse because of your level of authority and responsibility. I could share stories. You need to act quickly and decisively. Letting him do his thing is not an option, as an employer, manager and/or owner. This will only get worse if you allow it to play out. Considering the lines that have already been crossed I don’t think there’s any way for you to reset the relationship. Let him go and add whatever toppings you need to feel good about it - references, referrals, do a severance in exchange for indemnity against any claims, but gtf out of the relationship and don’t look back. Yeah, I empathize with your good intentions as well, but learn from this and don’t let it become an even worse lesson. Define (for yourself) the lines that can’t be crossed ahead of time so in future you bring more structure to your rehabilitation program. Write back in 6mo and let us know how it turns out.