Moral situation.

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I recently got "laid off" from my job at a restaurant that I loved. I was a salaried manager, made enough to live comfortably and still had time to do things I enjoyed, but the restaurant owner told me he couldn't afford me anymore. The other salaried manager, however, is stealing from him. Every week when he goes to buy restaurant supplies, he also sneaks in a receipt from wherever he bought lunch, and bills it out to himself. He also just straight up would take cash out of the drawer to buy drugs.

I have considered ratting out the other guy, but he is my friend. He's a nice person, but he's also shady. So I am torn between not wanting to ruin his life and wanting to possibly get my livelihood back. I just don't know what's right in this situation. I very well may have lost my job due to his frequent theft. So what should I do? Rat him out or just forget about it?