I am not on the island however this seems to be more of a common problem as I am aware of one Instructor already on Padi suspension for doing the same thing so seems its not the first time this has happened in the very recent timeline.
What students tend to forget when they see a certification course advertised in the states is it usually includes the full certification (in wording) but excludes the open water dives which they do on special weekend trips to an open water location.
Many dive shops dont have the open water near to there shop and needs to travel to complete the open water dives.
Peter if you do nothing then nothing will change if you do what you are OBLIGATED to do by Padi standards then that letter will be on file for that Instructor and should it happen again there will be a track record.
If it was me I would follow standards no matter which shop it was or Instructor as it just cost you $2400 bucks.
Another plus for getting people pre booked rather than just telling them to arrive and go shopping using everyone against each other.
This is the problem with no unity and it being so quiet, Peter undercut the advertised rate and in turn got undercut himself if everyone stuck with the normal Comm allowed and used that as a standard max discount in the price they would not be the playing on business's against each other but in these hard times its impossible to address.
$425 is not expensive for a full OW Scuba Certification Course if it is conducted in the correct manner, and with a good Instructor.
Many US dive shops use different marketing ploys to get you in the door with low advertised prices, and as Elbert say they make up the price of the course on other things, for example many Dive shops require divers (in small print) to purchase Mask Fins and Snorkel prior to the start of the course, that alone will tack on $150 additional to any advertised price.
Peter unless you wish to continue to be undercut and not only that but someone who is not even a DM (in your words) is training divers which as you know is dangerous its your responsibility to report what you know to Padi should you choose not to not only will you be breaking PAdi Standards but if something tragic happens then I am sure that is not something that you would want to live with that you could of stopped it.