Don't know if there is something else, but you're missing your closing </Entity>
Tag in your fetch XML.
Edit
wondering why you're rolling you're own Fetch SOAP.
Should just be doing something like this:
string fetchXml = @"<fetch version='1.0' output-format='xml-platform' mapping='logical' distinct='false'>
<entity name='account'>
<attribute name='name'/>
<attribute name='telephone1'/>
</fetch>";
EntityCollection ec = organizationProxy.RetrieveMultiple(new FetchExpression(fetchXml));
Also, OrganizationServiceProxy
implements IDisposible
and therefor should be wrapped in a using statement