genius747, lets be clear about a couple of things.
He is a good pilot
No he isn't ! He is dishonest with himself and others. His behaviour is immature fraudulant and criminal. You may need to research the subject a little further, but these are not the attributes that are generally considered to make a "good pilot".
knows his stuff for sure
No he doesn't ! he doesn't understand the rules, he doesn't understand the basic requirements and why they are there in the first place. He doesn't understand the law and what will happen to him if his supposed violations are discovered. He doesn't even seem to understand the rank idiocy of then commiting a crime and telling "your friend" of that offence. One can only wonder at what other "stuff" you think he knows for sure.
To be honest
Unlike the company you keep.
I cant see this really effecting his flying skill or ability
Skills and ability are a result of experience. If the experience is nothing more than fantasy and a ball point pen where is this skill and ability exactly ? If anybody is ever unlucky enough to be injured or killed as a result of flying with an individual who lied about his experience, can you begin to imagine the field day the claimants lawyers will quite rightly have with him, his estate, and his unfortunate employer.
I'm just curious what would happen if he was found out, or even how would that be found out!
He would be prosecuted, possibly imprisoned and almost certainly prevented from ever working within this industry as a pilot. His career would be over before it ever began. How would he be found out ? Well I am sure there are people from the CAA that read this site. In fact I am very sure ! It wouldn't be very difficult to weed out those applicants with 100 hours PIC amassed in california and submitting in January or February just from what you have posted.
He's going to be submitting his paperwork to the CAA mid Jan and I'm just hoping he' gets though!!
Then you are a poor judge of character. Nobody in their right mind should be hoping "he gets through". Perhaps you should tell "your friend" to tear up his fictitious logbook and set about rectifying the shortfall in his real experience. Whilst he is at it he might want to take a seriously introspective look at his character and behaviour and question whether he is the sort of person he thinks suitable for this profession. Unfortunetaly his ability to lie to himself may make this something of a moot point.
Hopefully your "friend" will be caught ( assuming this isn't something of a seasonal joke) and the information you have posted certainly should make that more likely.
Happy Xmas to you too.