inner fault exception or system.servicemodel.channels.servicechannel error while assigning searchresult to entitymembers in MDS

Hi I get below errors while assigning members as in below code...

                // Get the entity member information

....                members = MdsProxy.EntityMembersGet(new International(), getRequest.MembersGetCriteria, out emi, out or);

=>An unsecured or incorrectly secured fault was received from the other party. See the inner FaultException for the fault code and detail. at Oct/22/2013 15:12:52 ->Method Name : exception.

=The communication object, System.ServiceModel.Channels.ServiceChannel, cannot be used for communication because it is in the Faulted state. at Oct/22/2013 15:13:50 ->Method Name : exception.

=>Access is denied. at Oct/22/2013 15:44:09 ->Method Name : exception.

Also the error messages are inconsistent that every time it reports either of the above errors. I had tried below options already 

1. Updating service reference -

2. 2. Removing <identity></identity> in web.config file.

Could some one please suggest any other ways to overcome this?

Below code for ref:

private static string GetMemberSearchResult(string modelName, string versionName, string entityName, MemberType memberType, string[][] memberName)
        {
            string MsgTxt = string.Empty;
            MemberIdentifier memberIdentifier = new MemberIdentifier();

            // Create the request object to get the entity information.
            EntityMembersGetRequest getRequest = new EntityMembersGetRequest();
            getRequest.MembersGetCriteria = new EntityMembersGetCriteria();
            // Set the modelId, versionId, entityId, and the member name.
            getRequest.MembersGetCriteria.ModelId = new Identifier { Name = modelName };
            getRequest.MembersGetCriteria.VersionId = new Identifier { Name = versionName };
            getRequest.MembersGetCriteria.EntityId = new Identifier { Name = entityName };
            getRequest.MembersGetCriteria.MemberType = memberType;
            //getRequest.MembersGetCriteria.MemberReturnOption = MemberReturnOption.Data;
            getRequest.MembersGetCriteria.MemberReturnOption = MemberReturnOption.DataAndCounts;

            OperationResult or = new OperationResult();
            EntityMembersInformation emi = new EntityMembersInformation();
            EntityMembers members = new EntityMembers();
            try
            {
                string str = string.Empty;

                for (int i = 0; i < memberName.Length; i++)
                {

                    ServiceClientRef.Attribute attr = new ServiceClientRef.Attribute();
                    attr.Identifier = new Identifier() { Name = memberName[i][0] };
                    attr.Value = memberName[i][1].Trim();
                    if (attr.Type == AttributeValueType.Domain)
                    {
                        MemberIdentifier dbaMemberId = (MemberIdentifier)attr.Value;
                        attr.Value = dbaMemberId.Code;
                    }
                    else
                        attr.Value = memberName[i][1].Trim();

                    str = str + string.Format(" [{0}]  = '{1}' AND ", memberName[i][0], attr.Value);

                }

                getRequest.MembersGetCriteria.SearchTerm = string.Format(str.Substring(0, str.Length - 4));

                // Get the entity member information
                members = mdsProxy.EntityMembersGet(new International(), getRequest.MembersGetCriteria, out emi, out or);

                if (members.Members.Count() > 0)
                {
                  MsgTxt = "U";                 }
                else MsgTxt = "I";

            }
            catch (Exception ex)
            {
                MsgTxt = ex.Message;
                  throw ex;
            }
}