he cant do anything here unless he plans to live as an illegal.
He has a criminal record here is his problem. It is in his best interest to go back to Italy, and refile. He will have to have a waiver!
The obsticle he is going to be confronted with tho is his overstay in the USA. This normally comes with a ban for 3 or 10 years depending on length of overstay.
Coming in on the VWP means he cannot stay here and submit a waiver!
This is one of those cases that I think an Immigration Lawyer is necessary and IMMEDIATELY.
You say he was put in prison for a crime he didnt commit, was it a serious crime???