Hasbeen - even from the other side of the world, I can feel the pain and angst in that post. I completely understand where you are coming from, having been there myself. What an awful situation.
However, Nangoushuujin makes a point about loyalty....and to a degree he is right...if the instructor is deserving of loyalty, and the student does not honour that, it is not a good situation either.
Unfortunately, we cannot control how the world behaves, only ourselves. We can choose to walk with honour, or not. But we cannot force anyone else to our way. All we can do is walk away.