At DII and DIII it seems to me there are usually plenty of recruits to go around, even talented ones. You can often find similar players to replace ones you lose or are tied up by other human coaches.
That being said, it's POSSIBLE the guy is telling the truth about being on players from the start, even if they didn't show they were considering him. I've been interested in players and put some cash into them (not pull downs) and they won't be considering me. If life gets in the way and I don't recruit at all for a day or so, then my DII recruits are considered by someone at DIII but I want them, I'm going to fight for them the same as he was doing.
I honestly think pull downs are too easy in HD anyway. If the player is a legitimate DII talent, he should want to go to just about any DII school before ever considering a DIII team. Yet all the time there are battles between divisions like this one, which shouldn't even be much of a battle (no offense chapel).
Sure, maybe a few guys could be the exception and would rather be "big fish in a small poind", but the rule should be a player would rather ride the pine at a higher level than drop down.
Either that, or WIS needs to reevaluate what it considers to be each level and assign players more accordingly - meaning, instead of pulling people down, the vast majority of recruits would only stay within their divisions, and drop downs would be an every now and then thing if they couldn't get any attention at all at their level.