Also dumping a K9 at a shelter might be a problem.

There is a lot of emotional baggage around the topic but this is one of the many good, non-subjective arguments to justify demoting someone over this: this is by all means a special needs dog because he had very specific training and breeding. Sure they are "better trained" but also to have very specific triggers and react to specific behaviour. They need to be rehomed through a system that ensures he's getting an owner that knows how to handle an animal like that and dropping them at a shelter is just unprofessional and irresponsible.

You don't need to like dogs to understand this is wrong and the demotion perfectly justified.