My position is that, in his own words, the applicant "may have been our best performing AE", but the solution was to reject him.
As for misrepresenting oneself, what's the actual problem? If he's got the ability to do the job, who cares if he lied to get through the Byzantine interview process? And, as I already said, employers (management) lie all the time.
Hard disagree, even if this guy is the best that ever was, he's shown his true colors. The second it's beneficial to him, he'll lie again.