I assume you are an USC. Yes he can seek AOS here in the USA. Keep in mind, If the government sends him to court for whatever reason, he will have hard time defending his removal.
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if he goes outside of the country, he will trigger the 10 year bar. For adjustment of status, if all goes well, it is done inside the US.
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He may be able to adjust status in the US.
You should retain an experienced immigration lawyer to review all the facts, advise you, and handle the case. You can find one through http://www.ailalawyer.com.
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