Members of a Millfield subsidiary which went into administration nine weeks ago are still waiting to see if they will receive procuration fees that were frozen months ago.
Millfield South East (MSE), a mortgage broker based in Croydon, went into administration under the care of Herron Fisher at the end of April because of an alleged inability to meet its financial obligations or pay its bills.
About three months ago, around the same time Millfield first announced it was in sales talks with an undisclosed third party, members were informed by the then chief executive, Paul Tebbutt, that proc fees would be frozen.
Sources in contact with IFAonline say no reason was given for the freezing of the payments, and although they were contacted by the administrators about six weeks ago to find how much they are owed, it is not known who if any of the brokers of Millfield South East has so far been paid.
Following the suspension of proc fees, it was difficult to receive straight answers as to why the payments were frozen and who had made the decision, the sources state.
Members were later told Alan Easter, the Millfield chief executive, and former sales and marketing director, was in charge of the issue.
Sources allege at first Easter said advisers only had an agreement with Milfield South East, not Millfield Partnership, but when he was corrected by means of a signed agreement proving the connection to Millfield Partnership, Easter suggested it instead would be best to speak to the director of MSE.
But Steve Cox, the then director of MSE, is alleged to have claimed to have no knowledge as to why proc fees had been frozen and suggested if it wasn’t resolved soon the firm would have to go into administration.
Millfield stress the administration of its subsidiary is a completely separate initiation and has nothing to do with the latest developments over the past few weeks with regard to the rest of the Group.
On Monday Millfield announced the assets of Millfield Partnership and the issued share capital of Sage Financial Services Limited were to be sold to The Money Portal for £10.6m after trading of its shares was suspended last week.
Alan Easter and Millfield representatives were unavailable for comment at the time of writing.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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