Equity Trust Company blackmail Elyria , Ohio

All the IRA investments I put into an account at Equity Trust went broke (NOT their fault, mine).  When I tried to close the account, to stop their high fees, they requested proof that the investments were indeed gone.  Fair enough, except they wouldn't accept anything I submitted.  I tried to explain that when an investment goes south, there's nobody left around to verify anything.  I did get statements from the principals, but that wasn't enough somehow.  They kept charging me fees while this was going on, which I refused to pay.  They threatened if I didn't pay they would declare to the IRS that the investments were distributed back to me at full value; and they did.  I hope the IRS is more understanding.