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You should post some of your e-mail conversations. My first impression was that there might have been a billing mistake and they suspended the account. But from what you claim he is saying to you, it sounds like something more devious is going on.
The first step, regardless of what is truely going on, is to pull your domains from his nameservers. If it doesn't seem like he's going to all of a sudden give you access again - you just have to move on for now. You don't want your sites to just be down. Get your sites back online on another host, then figure out what to do to this guy.
You don't want your sites to be down while you are figuring this out, and you don't want him to profit from your traffic by leaving them pointed to his nameservers. After you move out, you need to focus on getting a refund for the period of time that is left on your contract.
I'm offering 60-Day free web hosting trials for WickedFire members only right now. See the signature and PM me if you're interested.
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