Have you spoken to his supervisor?
Besides, this might be something that is within his discretion to do. Not knowing the laws covered here, he just might be able to do that. Law enforcement officials make deals like that all the time. Whether he has the discretion and the authority to simply revoke your license or not is something I do no know. he could be bluffing.
This is what happens when you associate with lawbreakers - you get rolled up into something you do not want to.