Check persistence.xml under JBOSS_HOME/server/all/ejb3.deployer/META-INF.

When release_mode is on after_transaction it closes the session after each JDBC 
statement.

Resolve problem by uising on_close or just comment the line containing  the 
following line hibernate.connection.release_mode=after_statement

See Chapter 4 of Hibernate 3 reference guide 4.Configuration for more details

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