Can a large prepaid card provider hold on to money deposited indefinitely, and charge fees on frozen funds?

I opened a prepaid Amex card in October of 2012. In November I deposited 1500.00 from Bank of America and in December the money was frozen by Amex. I was given no explanation after fulfilling the requirements to verify myself. I sent my SS card, ID, Utility bill, etc. Amex told me to file a dispute with Bank of America and they denied the dispute. So since January they've been charging the monthly fee and refusing to talk with me. Bank of America said they couldn't help. I feel robbed. I called this month to try to fix the situation and I learn the balance is $411.00. I live in California, is this practice legal. I'm afraid that since they're a prepaid card program other people are victims but I also don't want to lose more money if I have nothing to win. I understand many would say there's another side to the story, but this isn't the case. I'm even willing to go to the police or media if reasonable.