I don't have experience with LINQ to Entities but your question rang a bell. In my last project I had pretty much the same problems with another ORM. Instead of letting clients of the business object layer use the ORM generated classes directly or duplicating all classes and implement a ton of forwarding functions, I've defined interfaces.
The clients of your business object layer would only see those interfaces and your Entity classes would implement those interfaces, with the following advantages.
You could add two new entity types that inherit from Account - RegularAccount and FrozenAccount and add your IsFrozen field as a inheritance condition (table per hierarchy).
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