@daisychain Wow! Like you, I can see all sorts of issues here. You are right to be concerned.

For two years we had a neighbor in similar circumstances, except he totally lacked family support. Turns out he had "run away" from a care facility back home there with a woman - who ditched him in Texas and took his car. People in our small community tried to keep an eye out for him, but he did go out to (dive) bars and brought home female companions - several of whom robbed him or otherwise took advantage. He ended up very ill and in the hospital in the hospital, where they wouldn't release him on his own. A brother finally materialized and moved him back to their home state and we have lost track of him.

You are lucky the first person your Dad approached was someone who was willing to tell you. I'm not sure what to suggest. Have you (or maybe your husband) tried talking to him about what he is looking for? It might be a good idea to bring his doctor into the conversation as well.
Sue