I know EXACTLY what you have been through because I have been trough the same thing you have. I call those "No Win" situations. No matter WHAT you do, you are wrong and can never do a good enough job, you loose just for showing up to work. They steal your confidence, one word at a time.

How I handled it was I turned in all over to God and did not go back to work there........then I sat back and waited. I trusted God to take care of it and He did as He always does. Those kind of people ALWAYS get what they got coming and your former co-worker and boss WILL get theirs.

My terrorizer (as I called him) started having tons of personal problems at home and in the middle of all those problems, he got fired too. God DOES take care of these people if you turn it over to Him. So, put it in His hands and move forward with your life. God also blessed me right after that with the best boss I ever had.

As for what his mouth is doing to your reputation, do not worry about that. People know how these people are and not many listen to them. THEIR reputation takes care of THAT!