Well, in my view, you have two choices:
1. Withdraw from the tournament
2. Work the tournament and, as you said, give him a second chance with a short leash.
I'm not familiar with how "reporting" him would work in your area, or if it would even do any good, so it's hard for me to comment on that. You know your area, you need to make that decision.
Then again, you mentioned that there were four officials including yourself assigned to the tournament - you may not have to work with him at all!
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