Not BS. If it ever came out the father knew the pics were there, and did nothing, then the father would be in trouble. In fact, it matters not what the father did or did not do. Once he witnessed the pics, father was in trouble, and HAD to act. Lose job, be forever marked, etc. Do we know if the son was open to quit this, or was he a belligerent son? The son obviously knew right from wrong, but chose to profit from it. Father was right, since son could have blackmailed father for money as well. Crazy.
Totally agree with you, not only that but the phone was probably in his father name, and the father was paying the monthly bill on it, and the father would not know whether any of the pics had been viewed by any one else through an email the son might have sent to his friends.