In the case of defiance, the most "honorable" open way to handle it is to directly give him a (reasonable) order, and when he refuses, make him declare his loyalty or opposition and handle the case accordingly. If your wolf is smart/cunning/not inclined to do the aforementioned tactic, you could maneuver him into a position where he offends something far bigger than himself and then deny association. In other words, let him fuck himself up as he goes rambo while doing backchannels with those he goes rambo to.

"This guy's crazy, so just heads up, he wants to break into your place tonight..." or some such.

I suppose the big question is, are you strong enough to take him out?