Echoing Attorney Burdick's advice, I'd be finding another attorney stat, and also be consulting with an ethics/professional conduct/malpractice attorney familiar with USPTO, as frankly this sounds like malpractice and breaches of a half dozen or more ethical rules.
The author is a Maryland attorney; however no answer given on Avvo is intended as legal advice or intended to create an attorney-client relationship. Dan's expertise lies in the electronic entertainment (video game) industry, as well as complex internet law issues, electronic free speech, entertainment law, copyright and trademark law, and computer fraud. He primarily represents game developers and founders of emergent internet technologies.
If your facts are accurate, you should first see another patent attorney to determine if you can still protect your invention, if any, and to get a better analysis of the status. If the new patent attorney confirms you have not been treated properly by your prior attorney, write the prior attorney and request your $4000 back from the patent attorney. If he refuses, and you feel you are justified in your position, you can report him to the OED at the PTO http://www.uspto.gov/ip/boards/oed/oedcontact.jsp or to the state bar association of the state where he is licensed. You could sue in small claims court. You will not get punitive damages.
I am not your lawyer and you are not my client. Free advice here is without recourse and any reliance thereupon is at your sole risk. This is done without compensation as a free public service. I am licensed in IL, MO, TX and I am a Reg. Pat. Atty. so advice in any other jurisdiction is strictly general advice and should be confirmed with an attorney licensed in that jurisdiction.
In addition to what counsel have stated, if you decide to sue for malpractice keep an eye on the Supreme Court and ask your attorney to confirm that the case is filed in the correct court. There is a case pending that is probably going to address whether such claims must be brought in federal or state court, and the circumstances that govern that choice.
See this link for a summary: http://www.lexisnexis.com/community/litigationresourcecenter/blogs/litigationblog/archive/2012/10/09/u-s-supreme-court-to-decide-jurisdiction-in-patent-malpractice-cases.aspx
THIS RESPONSE IS INTENDED TO CONVEY GENERAL INFORMATION ONLY. IT SHOULD NOT BE RELIED UPON OR TAKEN AS LEGAL ADVICE. FURTHER, THIS RESPONSE IS NOT INTENDED TO AND DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP.