[rbentnail]

Shoot them.

Not the dogs, the kids. But be fair about it. When your dogs lie to you, shoot them, too.

Seriously, I've been in this kind of situation before with the neighborhood kids. What I did: play it cool for a while. No ice cream, be standoff-ish, act indifferent towards them, no basketball or baseball or whatever. Eventually you change in behavior will come up in conversation, then you get to tell them how they (he) betrayed you, lied about you, how that lie could have cost a beloved dog's life, and how dissappointed and distrustful of him you are, and how you may never trust him again. Be sure your kids know this upfront- sit them down and explain to them how they are gonna get knifed in the back by this kid, and don't trust him and even avoid him.