HE committed a serious felony. Expect that he will be charged soon.
Some of it will depend on how much money he misappropriated, because that affects what they can charge him with--- a misdemeanor or what count of a felony. The charges will help determine what his punishment is. He could be sentenced to probation, "house arrest" or confined in a cell. I think for the moment you can be his friend, but avoid hanging out alone with him, 'cuz people might think you're involved, too.
fraud is hard to prosecute. He should get an attorney and plead not guilty. Gift cards are not stupid (in regards to purchases made with stolen credit cards) because gift cards cannot be traced. He should not fess up or admit to anything.
Hang out with better people