If the candidate was dealing in good faith, then company should too. The whole corporate-think "this person might do something evil, though we have no reason t

If the candidate was dealing in good faith, then company should too. The whole corporate-think "this person might do something evil, though we have no reason to suspect that, so we should do evil first" is wrong. (I said talk with management and HR first; they might counsel or instruct differently, but you should make an effort to stand up for employee while you have the chance, before you potentially have to disagree and commit.) If the candidate wasn't dealing in good faith, then, like I said, terminate.