to me it sounds like 'SPONSOR' is the right word rather than investor.
a company sponsored him with webhosting and a domain which they registered in their name. he was doing something the host/sponsor did not like so they removed their sponsorship which included the domain.

i sometimes sponsor groups with webhosting, but if they require a domain then they have to pay for this. it is a bad situation if whoever you sponsor cant afford approx. $8 for a domain.

easyhostmedia, I guess you would be right about it being more of a sponsor then an investor.

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Anyway, the full story behind it had been, we were told the server was being moved. After a week of down time which is very odd due to it being a cloud server and everything.
When I contacted him to see when it would be back up, he claimed it had never been down. -- Strange as none of my clients were able to connect, I was unable to connect even with various proxies to see if it had been a firewall issue.

He then said he sent me an email with all of the information in which I never received. A few words were said and right after he dropped all contact and servers and had banned us from his support system. Which is still odd as he has said the same words to us multiple times.

In my opinion, I believed everything went down because he no longer wanted to sponsor us but didn't want to tell us either.

most likely senario is that as you were a sponsored account (taking server space FOC) he received a paid order and needed the your server space for this, so rather than tell you this he just dropped you off the server.

I have sponsopred sites before, but always make it clear that they need to make regular backups as if i need the server space for a paid client then i will use their space and this could be without any notice.

You would need a lawyer, and hopefully you made a contract from the beginning.

normally if its just a sponsored site then just agree to the hosts TOS as any other client, the only difference is that you are not paying an invoice every month. if a sponsor registers a domain and then allows you to use the domain even a lawyer cannot do anything as the domain belongs to the sponsor and not you.

that would be a pain in the ass, try to get your issues resolved with your investor, if not take him to court if you on the correct side that is