WOW, just wow. If the story is indeed true (no reason to question the credibility, but sometimes there are two sides of a story), then Iīd be equally upset.
It does raise an interesting issue: When you fly an airline that isnīt based in the Western world between two countries which donīt have strong consumer protection laws, you have pretty much no recourse in dealing with the airline and they can treat you like garbage and get away with it.
This is particularly true when the ticket is issued by another airline (which happens often, not just with award tickets), as disputing the charge on the CC wouldnīt work most of the time either.
P.S. Depending on which country you live in, you could try sending a formal written complaint (via snail mail) to the sales rep in that country. Keep it short: TK intentionally overbooked J/C, downgraded you, offered no compensation and youīre holding TK responsible and wonīt accept the "contact AE excuse" nonsense.