I guess the answer is, because I was working with a lawyer, with an application in the system, paying taxes - I did not think I was breaking any laws. My lawyer at the time said that if the application was approved, I would have to pay a $1000 penalty. He never advised leaving or not working.

I am a permanent resident of Canada, I own a home, a car, have a full time job - what is the worst that could happen, they revoke my visa and ban me from ever returning to the US? Can I be arrested?