"he claims to have a gun etc,etc. "
He does, huh? Bet he doesn't have a permit. If you are feeling vengeful you can drop a dime to the police. No due process here - they will search his place, find the gun and either throw him in jail for the rest of his life or deport him.
You do not need a work permit if you are a legitimate business owner. An BB, before you start ratting someone out to immigration make sure YOUR own paperwork is in order - work permit, TCC, business licenses, taxes paid and of course - a watersports license. Be careful dude. Lots of people read these boards and this stuff can come crashing down on YOUR head, not his.
Not worth it for $2,000.00. Leave it be. Get off the computer and rent your paddle boards. Hey - if you had kite boards today you'd make a killing