In a perfect world, you could report him and then spin it where the reptile hobby community is policing itself and trying to do the responsible thing. Unfortunately we don't live in that world and so the media would spin it sensationally, which would not reflect well on the hobby.
I do like the analogy about the drugs though. When you consider you can sit there sipping a martini, but would report the drug dealer next door, that about sums it up. They are both mind altering substances but one is legal and one is not. However, we need to remember that when you turn in the drug dealer they don't try to take your gin away.
Quite the conundrum.