"Several consultations and meetings later, however, the company’s board faced a dilemma. We had to make a decision. The costs of pursuing the case would simply exceed any compensation from winning it. So, should we then pursue the case?"

Maybe I don't know how your countries legal system works, but surely the cost is borne by the state? I assume then you mean the cost of the time you would need to spend to support law enforcement? But the thing is, now you:

a) can't name this fellow,

b) if someone does a background check of him and his father in the future, they will not find this

c) his father, a layer (?!), stands a lose a LOT if this really is true, and would probably be smart enough to settle this ASAP,

d) if a customer had not paid, you'd probably consider writing off that as a bad debt, but still possibly engage a collection agency to attempt to recover the debt - you would only get a fraction of it, but you'd get some. You might have found a willing law firm to pursue the case, in return for a % of the settlement/award.

e) assuming a successful prosecution, most countries would block this young man from being a director of a company for a LONG time - that should be enough reason to follow through alone

I understand it's expensive but I, for one, feel that you have a moral obligation to take the evidence to the correct authorities, and let them make the decision on whether they have a case and to proceed or not.