"Terminated Merchant Account" ????????

A friend and asscociate of mine has a small On Line video store. I say "small" becuase that's relative to many other operations. Anyway, he has had his merchant account for about three or four years with the same merchant account provider. Very few charge backs for him in the period time. Then in a period of about three to four weeks one invidivual purchase material using several different credit cards over that period of time, apparently making purchases at differant times of the day when differant people were handling the orders. The charge backs finally came back on him and the Merchant Account provider "terminated" his account for "excessive" charge backs and listed his business name and tax payer I.d number on the "Terminated Merchant Account" file. The banks got there money back, but my friend is not only out the money and the product, but is now unable to get another merchatn account! Anyone have any experience or knowlage of this and what recourse does he have?????? This seems rather odd that he can be put out of business for being one of the victims of credit card fraud.