In 1969, Ballard and Stafford Smythe were charged with tax evasion and accused of using Maple Leaf Gardens Ltd. to pay for their personal expenses. Bassett, who had by this time become chairman of the board, received the support of the board of directors in an 8–7 vote to fire Smythe and Ballard. However, Bassett didn't force Smythe and Ballard to sell their shares, and both men remained on the board. This proved to be a serious strategic blunder, as Smythe and Ballard controlled almost half the company's shares between them. A year later, they staged a proxy war to regain control of the board. Ballard was reappointed executive vice president. Facing an untenable situation, Bassett resigned as chairman and sold his shares to Ballard and Stafford Smythe in September 1971.