Thanks for all the feedback on this. I need to talk with the guy to see how serious the situation is-- I mean, if the recognizer is threatening to turn him in, that's one thing, but if he's just afraid of facing a few homophobic comments then that's a whole different story. I'm pretty sure it's the latter case because he wasn't concerned about the other (solo, b/g) scenes he's done.
If I do opt to "re-call" the scene, I'm gonna tell him he'd have to reimburse dvd replication costs, distribution, post-production, etc in addition to his fee which would end up in the thousands. That would probably take care of the issue and learn him a lesson.
I do feel a little bad for the guy, but I agree that he went into this knowing the potential outcome. And in reality, he came to *me* desperate for work! The only other time this has happened, the guy is a semi-pro MMA/cage fighter and just wanted his picture taken off the site, and didn't care about the video (for some reason...) In that case, I just went along and took it down. No biggie.