Welcome, Suganthi.
I'm really sorry to hear about your friend and his troubles and I commend you for caring about him and wanting to help him.
As far as his childhood friend is concerned, it's always painful when we've been betrayed by someone we thought loved and cared for us. The only way to be free from it binding us up, though, is to forgive. That doesn't mean trusting them again unless they've shown a change in character, but we can forgive.
I don't think we can be of much help here in telling you what your friend should do about being jailed, except to urge him to get good legal counsel. This particular forum is not the place for that kind of advice.
I pray that you will have peace regarding your friend and will be able to commit Him to the Lord to take care of him. Remember, you can help him as the Lord directs you to, but the buttom line is that God is His provider and helper.