Microsoft Forefront Client Security flags this as a tool used to create viruses, so idk what's going on here.
It sounds like your friend has a bigger problem though, providing you didn't run that EXE. Either he's going to lose his Internet connection for sending malware or his computer's been taken over by one of the countless malware variants that spread via MSN, Yahoo Chat, IRC, e-mail, or something similar, taking advantage of the trust friends/co-workers/bosses/employees/family members place in each other.
If you can meet your friend face-to-face, you'd better do so and tell him what's going on. If you can't meet face-to-face, a phone call would be best; barring that, try e-mail and hope the virus (I'm assuming the problem here is a virus) doesn't get to it.