You've brought up that 'there's things about him I'm not going to post on the Internet' several times now, yet are still asking people what you should do. I get you don't want to disclose your 'friends' personal info to random folk, but at the same time if the majority of people are telling to trust your gut and be honest with the CFO in that you wouldn't trust him with firearms, and we don't even know the 'fully story' or the extent of 'the sketchy people that frequent his place of residence' then maybe that should be a pretty good hint to you.
Myself personally, I wouldn't have consented to be his reference in the first place if I had so many misgivings about him but that's in the past. If you don't get a call from the CFO in the next three-four weeks from when he sends off his PAL request then I would call them and air your concerns and then let the system take it from there. At least you did what you could and your conscious will be clean. I take firearms and my responsibility for owning them quite seriously, and those same people who are my friends are also people who are themselves responsible firearms owners.
And for the part about the bit about "Some of you just make it seem like he is just a #### and it's no big deal. You are probably the type that just sits back and minds his own business even if u see a crime committed because you are too scared to say anything or its none of your business. We need more people like you in this world would be a better place, where no one has a care in the world. *sarcasm", well it's rather rude to ask for people's opinions and then condemn them for them, and I think t-star covered the rest quite well so I'll just leave it at that.