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So long as you don't have a contract with him do as others have said. Wait until he goes home for the day, change all his access to your system the fire him.
It sounds like you made it clear you were an adult company during the interview. I get the feeling he either has issues or he changed his mind about working for an adult company. Whatever the reason you don't owe him anything. If it is in your budget you could always offer buy him a ticket back to Michigan.
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