[kfcm]

I'm going to address how to handle the employee who came to you in confidence.

You need to sit down with her--before you do anything--and inform her you need to do something and why. Tell her you understand she came to you in confidence, but this behavior can not be tolerated. She might be able to brush it off, but the next employee the biz dev person harasses might not be so understanding and file a sexual harassment lawsuit against the company.

And if it's discovered YOU knew of his behavior and did nothing.....