OK. What do you want from us? A solution? Fire the Admin and change all the passwords to your Admin CP and any others passwords he may know. Look through your hacks and make sure he didn't add a 'back-door'.
As for the passwords, you could take a backup and manually copy/paste the password and salt (and there may be one other column, I can't remember off the top of my head) for your users, but that is probably just as tedious as resetting them from the admin cp.
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