How to un-friend and report fake profile in Facebook

Recently, I found a fake profile on Facebook. 
Few months back I thought it was not an issue because s/he had only few friends made from the fake profile, pretending to be someone else. But, at this moment I can see that more than 12 dozen people have fallen into it.  I talked with many of them... so far no one knows who is this guy on Facebook whom they are friend with. I am quite surprised to see how lightly people take making online friends. No wonder why scams happen all the time!

No one seems to have evaluated the risk factor in making friend with a fake person. The most interesting factor seems to be the "Mutual friend". They accepted this fake guy because they thought this has mutual friend with their friend whom they personally knew!  So, the effect propagated. I had also fallen into the trap of making friend with this fake guy. But once alarmed by some random post, I withdrew it.
Now, the fake profile is talk of the town.  
So the current question is how to report or block the fake profile.

Facebook policy does not allow you to be the friend and yet report it.
So, one has to un-friend first and then report. Here are the screenshots.

Beware of fake profiles!
Once they are under your skin, you can be under trouble!