Paint responds, "you do not need to be going out and busting everyone that you come across that has illegal software on their systems. that is NOT your resposibility..."

Paint, that's been the entire point of the discussion. I never said I was going to come looking for you. I never said I'd turn someone in. I said that the consequences, and the responsibilities are clear under The Law (in the USA).

As an I.T. professional in a work organization, it falls upon you to guarantee the software licensing compliance of that organization. That is established legal fact.

If you can afford the financial consequences, you go on as you have. If not, then start to understand what's expected of you.