No, the IRS allows you to rollover your account after you leave a company, the company can't arbitrarily make up their own rules simply because they want to punish you in some way.

Now it's time for you to report what they are doing. Call the Dept of Labor's Employee Benefits Security Administration at 866-444-EBSA. Here's their website http://www.dol.gov/ebsa/

I found the letter they sent to me. This is just the parts that apply. This is why I havent done anything before now.

Due to the nature of your termination, the Trustees have determined that you must incur five (5) consecutive one-year
breaks-in-service in accordance with Section 5-2A of the Plan and Trust Document (pages 21 and 22 attached) which will
occur on July. 1, 2012. Your distribution date will be approximately September 15, 2012.

(Plan and trust pg 22)
Distribution to a terminated Participant of the Vested Portion of his Participant's Total Account prior
to the occurrence of five consecutive One-Year Breaks in Service shall not be made if the Employer
communicates to the Trustee that either the Participant was discharged or resigned to avoid a discharge for
causes of dishonesty, disclosing confidential information, or for actions prejudicial to the Employer or
subsequent to his termination, the Employer discovers that the Employee engaged in acts of dishonesty,
disclosing confidential information, or actions prejudicial to the Employer. Additionally, distribution to a
terminated Participant of the Vested Portion of Participant's Total Account prior to the occurrence of five
consecutive One-Year Breaks in Service shall not be made if the Employer communicates to the Trustee that
the Participant has terminated his employment with the Employer to accept, or at any time prior to distribution
of the Participant's Total Account has accepted employment or engaged, either directly or indirectly, in any
occupation, effort, endeavor, venture, enterprise, or business in competition with the Employer. Application of
this paragraph shall not result in the forfeiture of the Vested Portion of any terminating Participant's Account.
Forfeiture for cause is not permitted under this Plan. -

That's only talking about any vested portion (the part your employer contributed), not your contributions, and I'm really not sure that they can decide to keep it simply because you quit and took employment with a competitor.

As I said, call the DOL EBSA.

When i left my company i was losing money so i call the 401k where they sent me my last statement and frozen any more money coming out since i no longer had any coming in forget what it was call so i would lose what i had

Oh boy. your employer stole your money. another enron company.