Serious Question, Serious Answer Needed!

If I were you I would immediately consult an attorney before taking any contract action against someone you "hired".

Again, this is why you need a lawyer. You really should have an attorney available to your business if you are going to recruit, hire or contract other people.

I agree with Dave. However, I would definitely not send a termination letter for cause. I would just send a letter stating they were terminated. It is your agency and you should be able to employ whomever you wish. If they have not written any business then there should be no harm no foul but again talk to an attorney specializing in employment type law.
 
Do you have proof of the threats? Witness or were they made in writing?

I suggest you talk to your local law enforcement officers. You might want to get a restraining order in place.
 
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