dbutton
Let me answer by telling a story of my own. When I was working for a large chain drug store about 30 years ago, tha manager asked me a question similar to your situation. He said, "If you were a manager and caught a checker stealing $10 from a cash register, you had witnessed it yourself, and confronter the checker about it. What would you do?", he asked. I said, "I would warn the checker and wathc close from then on." He said I was wrong, and that I should fire the checker on the spot, because you have no idea how mant times you have been stolen from in the past and NOT caught it.
Point being, you were right to do what you did and had PLENTY of witnesses in advance to back it up. I think you were way too nice to him. Let a liar be called a liar and a cheat be called a cheat. Let him teammates, if they were in on it, know everyone is watching them all from now on.
If you were Hillary and Bill said he didn't have sex with the maid would YOU believe him?