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If I am reading correctly here, after he got moved (supposedly without his consent), he spoke with you and asked you to release him to whomever he wanted to go to? I'm also assuming you must have said no, since he threatened to come on the forum to "out" you?
If this be the case, then shame on you for not releasing him. I understand that he might have lead you down the primrose path thinking he would be coming under you, and shame on him for not being upfront....however, you don't own him and you should release him and let him go where he wants to. If SL won't honor that, then shame on them too. They don't own him either.
Either way....let him go and go on about life. It's really that easy and simple. Seems to me that a lot of recruiters have attitudes as though the agent works "for" them when it's the exact opposite.