The larger problem:
The boss doesn't have technical expertise and will not defer to the judgment of the person who does, lacks ethics and is not going to stop their crap. It will only stop if someone else stops them, probably via tossing them in jail at some point.
Assuming good faith, honesty and a reasonable degree of accuracy on the part of the OP, looks to me like he should probably plan his exit. Not necessarily drop his resignation today, but start making plans.
It's absolutely true that if he ups his game, he may find things improve and he can work with this person effectively. Or he may not.