I had a similar problem. Of the moderating team I took on, there was one admin and three or four mods who were fairly cliquish, and when I started to make a few changes there were ... repercussions. Known friends of mine were targetted for disciplinary action, for example - just petty shit. Nobody had DB access amongst the group, though.
This went on for months - quite a bit of behind the scenes fighting. A guy at work told me I was looking glum. I explained to him some of the situation and admitted that it was burning a hole in my stomach every time I thought about it. Granted, I wasn't perfect in all I did, and I can think of a mistake or two I made, but my transgressions weren't deliberate.
His reaction was, "So what?" He explained that he used to be in the UK air force as ground crew and he's seen three of his mates blown to pieces in action. Something like that didn't really register with him. He then asked how much I was making from the forum. I pointed out that I was paying for it without any sort of revenue. He gave me a look.
Within twenty-four hours, they were gone by my hand. One had jumped ship previously, but the accounts were altered and the PMs sent, and then the site announcement went up explaining that certain people were no longer admins/moderators. I closed it and didn't allow any discussion of it. Within three months, the members had no memory of them (which means when I eventually give it up they will have no memory of me...).
I slept better than I had done in some time.
Something like that has to be done quickly and cleanly, but most importantly for the right reasons. My only concern for you is whether or not you have the moral high ground. If you have proof of his misdeeds, cut him off now. After that, it becomes a grey area.
Rapscallion
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