Purchase & Sale Former Sales Associate diverting funds

Sports2015

New Member
Our business covers local high school sporting events through radio broadcasts of gamesand over the internet, printing a monthly paper with articles on sporting events and a website with articles and game scores. We are funded completely by client advertising in our paper, radio commercials and web banners. One of our sales people received a higher percentage of commission in exchange for sales, broadcasting games and the use of his broadcast equipment. He quit 3 months ago with no notice or telling the owners. It was determined through lack of contact and he telling other employees he was no longer with the company. Repeated contact was attempted with him to find out his status and work out payment for some commission he was owed. In the meantime the employee contacted the radio station and a major client and the business lost their radio outlet for broadcasts and and the client with no real explaination. A letter was received last week from the former employee's attorney stating a large commission was owed. The company disagreedoes with the amount and told the attorney that a the figure was incorrect. Two days later another letter was received with copies of letters sent to all of the former employee's advertising clients having invoice payments sent to the attorney to go in escrow. The letter stated that they were clients of the sales person and the checks should be made out to him. The company saw an attorney who is more interested in resolving the situation rather than answering the question of "can this be legal"? The former employer has no written contract. The company wants to resolve this also but cannot make any commission payments or operate the business with funds being diverted. Is this legal?
Thank you.
 
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