This is what I'd do for an even more subtle reason. Wrecking his business this way could poison your own well of prospects. The customers of his that you could

This is what I'd do for an even more subtle reason. Wrecking his business this way could poison your own well of prospects. The customers of his that you could win just by being better might abandon your whole market segment with a "they're all crooks and incompetents... we only buy from IBM from now on" type attitude once they learn of a bungle this big.