Trust is earned, not assumed. That's one of the takeaways I got from Mike Monteiro's "F U, Pay Me" presentation. I don't recall if he specifically deals with outright lying, though since the underlying theme is getting creative types to develop a backbone when working with clients, he'd probably recommend what you did, which is what he calls "firing the client." Recommended watching for anyone having to deal with clients, and entertaining to boot, Its up at https://www.youtube.com/watch?v=jVkLVRt6c1U
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"Trust is earned" is right. Too many people think it's some sort of default setting, or that "benefit of the doubt" = "trust".
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