How can you be "ratting" on him? As I see it, you, as a taxpayer, are the employer of the inspector. You are only asking your employee to do what you pay him for- and giving him the info he needs to do his job!
Machinists are usually precise and neat. This guy, with his attitude, probably also has all sorts of guards missing, interlocks bypassed, etc. He needs to be shut down.
It is also unfair to the law-abiding to let this guy play by a different set of rules.
Good thing you were "fired." This guy is the sort who won't pay- but will certainly hold you to account for anything he can possibly blame on you.
With any luck, he will have a poor attitude with the inspector- who will return the favor by having the entire inspection community pay a visit.