I know someone who did the same but he was hit by a moron.I used to live my life in theoretical events and then i grew up.
If you're going to drive like a tard and go around hitting people then perhaps you should report it to insurance.
As for the rest;
Years ago I had a friend with a supercharged and heavily modded s2k. He wrapped it around a lamp pole railing in 3rd gear in the rain. Towed it home and pulled everything out and put it back to stock, then reported it to insurance. He made a killing.
Do i condone this? No.
Just making a point that mods (even an engine swap) can be done after the fact.
Mods can be undone but not when you seriously injure someone. Your buddy is lucky no other vehicle or person was involved because his car wouldnt have moved when cops and accident reconstructors showed up.
As far as the theoretical events comment... Things might be different if one has a wife and children that rely on them.
Id hate to have to explain to children that daddy got their house and all their assets taken away