They are both wrong but without any context it's impossible to tell what would be right.
"You must show him due professional respect, no matter that he made you a fool."
This is saying that it doesn't matter that he made you look like a fool. You still have to behave respectfully despite of it.
"He may lack formal education, but no matter, he made you a fool." We also could put that, "No matter that he lacks formal education he made you a fool." This is saying that it doesn't matter that this person doesn't have much formal education. He managed to make you look foolish anyway.
Or if you tried to con somebody and failed an observer might say, "You think you're so cunning. No matter, he made you, fool." Now the observer is saying that it doesn't matter how cunning you think you are because your target saw through your subterfuge. They are addressing you as fool to be insulting.