^ I hear you, it is an awkward situation and I don't envy it. We probably all have "a friend of a friend" or " a family member" who probably shouldn't own firearms... doesn't even mean they are "criminals" or "bad ppl" but perhaps careless, unsafe, depression issues, or maybe drink too much etc... and maybe firearms are not the best hobby for them to get into at this moment... perhaps in a year or ten years it would be fine.
I honestly don't know what I would do if someone asked me to be their reference if I had reservations about them owning firearms. I guess I would try and talk with them about it and see if I could come to a better conclusion. You did try and talk about it with him and he didn't give you great answers. As you said "... he is not responsible and disregards the law..."
At this point I would wait for the CFO to call and answer honestly as possible, perhaps without burning your friend too badly. Good luck.