Bates Investment Services founder Graham Bates will fight for his reputation and more than 500,000 after he and his sister were sacked for gross misconduct.
Bates, who was chairman of the Leeds-based IFA, and his sister, former managing director Helen Peace, received a hand-delivered letter on Tuesday morning, saying their employment with BIS had been terminated. It follows a two-week internal probe into the pair’s other business dealings. The probe was headed by Richard Craven, managing director of The Money Portal, which bought BIS in September 2003.
The battle for outstanding salary for Peace and Bates, thought to be 120,000 each, and the money from the sale of BIS could go to the courts.
Part of the consideration of the sale was the issue of 774,568 in loan notes to Bates, of which 516,378 is claimed to be outstanding and 258,189 said to be due for redemption next March.
Bates says: “I am devastated that my association with the firm I have worked hard to build up over the last 10 years should end in this way.”
Craven says: “I can confirm that Graham and Helen have been sent a letter saying that their employment has been terminated. In no way does this affect the advice side of the business.”