You've learnt a lesson from this, to say the least

That is if you want to be a good landlord, you need to know the law, unless you are willing to retain lawyer if problem arises. From what I read from your explanation, I don't believe you have the capacity to handle this by yourself. So basically you have two options:
1. Consult a lawyer and tell him everything honestly. Then let him handle it
2. Get over it and learn from it.

If you were in New York, I probably would be able to help you. But North Carolina is not a place that you noramlly would be able to find a capable Chinese lawyer who can understand your situation yet only charge you reasonable fee.