As I said It is employer choice to do LMO for foreign worker and we cannot force them, as certain instances employer tried best to help employee with LMO and work permit but HRSDC doesnt approve application and hence due to rejection either employer did it again or employee lose heart and left canada.
So in your case too whether they kept you waiting or just cheated your trust by not doing it, you are on behest of employer and cant claim anything. Ofcourse if you have a job offer agreement and an application with which you can relate your case and tell immgration officer that my employer blackmailed me and asked for money to complete paperwork only then you can make a stand against your employer.
In my case I allowed Bank to exploit me for my experience but I knew in advance that it is their policy to not do any kind of paperwork for TFW or students who are working with them on PGWP. After getting failure from Bank, I tried it with local restaurant where I was working part time for long time and allowed them to harass and exploit me to fullest just to provide me an LMO and I got LMO and 3ys work permit and the harassment and torture is still continues as my PR application is under process based on the LMO so I actually cant take any step against employer because at end of day it will screw my PR. SO the crux of story is we cant do anything even with help of media or govt agencies because we are FOREIGNERS and Law is not made for our security or benefit. Yes one day when your life get smooth you can tell media your struggle.
Can you imagine how painful for a professional to work in restaurant as a general labour and still not get paid for actual hours, and moreover has to pay back a major part of salary back to employer for doing a LMO. But always remember GOD is watching and neither I gonna spare people for SIN they have done to me, just wait for right time, till then just ensure that you get legal status to stay no matter even if you have to pay money for it.
Take Care