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After you mindread him, if you confront him for a reason not to tell Richard you will receive Armoured Champion David's Gauntlets of Hope as a default reward and one choice of either 450 exp, 160 gold, or a random item(s). After which, you can tell Richard anyway and see David die for an extra reward in itself.
If you tell him that you are going to tell Richard, he runs away and later he can be found on the pathway between Broken Valley and Orobas Fjords. You can mindread him when you meet him the second time for 800 exp to get a stat point.