Take it from some one who has been in leadership and management positions, even if we like some one and do plan or want to hire them, things change and there is always some one higher up to answer to. He should not have led you on, that is so unprofessional and wrong because he should know things can change. And he should have been more honest as to why you were being discharged/terminated. Thanked you for a terrific job you did and explained why things changed and with regret must let you go. That would be the correct way to let some one who did a great job go.