You're beating a dead horse, Pete.
Or else I really wasn't clear about it. The facts of the matter are not in
dispute. The pilot, so far as I know, does not deny that he basically ran the
plane dry. In IMC at night, with two passengers. No one involved seriously
entertains any other scenario.

The only question worthy of an "ethical dilemma" is what action should be
taken. What would be the correct response? The guy is young - as captains go -
and destroying his career is not something any pilot would gleefully (or
self-rightously) leap to do.

Greg