My personal employee referral policy is to only refer individuals whom I know very, very well and who would be a good fit for the firm. I also refer people only for positions that are open to applicants outside of the firm and do not simply circulate resumes. I do that because my reputation in the firm is sterling (and I intend to keep it that way), fairness is one of the firm's core values, awkwardness in the workplace is something to avoid at all costs, and the appearance of nepotism and/or favoritism is something I want to avoid.
So, were I in your shoes I'd help this individual by offering to review his resume from the viewpoint of a hiring manager.