If you did not recruit him there should be no penalty. I'm pretty sure any promises don't transfer over to a new coach. Just let him go and it shouldn't be any worse than rescinding his schollie before recruiting seeing as you did not sign him.
If you're talking about Joseph Shook, being a crappy Junior, I'd hope he transfers. If not I would rescind his schollie anyways after the year. Personally I would have already done that to start the year, along with Michael Causey just to be able to start building a solid program.