[Macromedia][SQLServer JDBC Driver]Object has been closed

I’m migrating to Windows 2012 server and have ColdFusion 10 update 12 installed. I have a ColdFusion datasource connecting to MS SQL 2008 R2 server with connection string (EncryptionMethod=SSL) on Windows 2008 R2. The datasource verifies fine.  I’m getting the following error anytime I query the database.

Error Executing Database Query.

[Macromedia][SQLServer JDBC Driver]Object has been closed.

I've tried restarting the ColdFusion services, rebooting web/database server but nothing seems to work. Anyone else encountered this problem? If so how did you resolve it? Any suggestion is greatly appreciated! Thank you in advance for your help!