I am dead with J1 waiver?

I used to have J1 in the US, then went back to China. But less than 2 years. I am now a Canadian citizen.
When I was in China, I was laid off, and was given a letter to exchange a no objection statement from Chinese embassy.
For many reasons, I didn't do it. I thought my case was an easy one. I didn't come back to US and stayed in Canada until become Canadian citizen.
Now, Chinese embassy doesn't want to process my waiver application solely I am not a Chinese citizen anymore. I am worried I am dead in this case.
I have many strange things on my docs. My J1 form indicates I am not subject to two years although I know it is a mistake. But my former lawyer converted my status from J1 to H1, and it was approved! I didn't stay, instead I went back to China.
Now, I am seriously thinking I am dead in this case. A lots of folks here have same issue.
Is there any other option except lying to Chinese emabssy that I am still a Chinese? I am hoping DOS could recognize program sponsors opinion as no objection. I have their opinion instead. The real issue is Chinese embassy doesn't accept my docs.
I know many people have the same issue. Are we dead??