If the facts show that he had to resign, it could be be argued that he did not lose his employment through his misconduct but as a result of effectively being told to resign (and thus this was also not a case of voluntary leaving see R(U) 1/58 noted in Wood. Ergo, no sanction should apply.
If you feel that the first part applies, it's a matter of then arguing that he did not do anything blameworthy and wrong and that his actions were reasonable in the circumstances, (eg lack of assurances about data security, history of identity theft, unreliable organisation, etc).
Then, also to submit if the Tribunal were minded to find that there was misconduct, to press for a minimal sanction period.
Theft carries a maximum sentence of imprisonment for seven years. To get any kind of prison sentence for such an offence (let alone 7 years) , it would be after many offences and/or major amounts stolen. There is an analogy with variable length sanctions. The maximum "sentence" is 26 weeks, and should only apply in cases of repeated sanctions and or aggravating circumstances. I have used this argument at Tribunals, having first heard it suggested by a Tribunal Chairman during a hearing.
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