Ok, I have also been in this position.
Neighbours live too close to you, If you report him who knows waht he may do back to you and your animals, im sure he would guess who dobbed him in.
They dont think they are abusing the animals.
If animal control stipulate he has to provide feed/water and shelter, he may do it but the dog will still be unhappy there.
I would wait till the dog came onto YOUR property again, then have your friends come by and pick him up and take him to a much nicer place to live, you can even turn your back while they are doing it so you saw nothing. then you dont have to lie.
Good luck with this, let us know how you go.