The federation is made up of Woodberry Down, London Fields, Mandeville, Whitmore and Burbage primaries. It wanted to convert all five into academies outside the control of Hackney council, but the investigation meant the plans have been put on hold.
Parents at the schools have been sent a letter confirming Mr Wallace’s departure. Hundreds of them had signed a petition calling for his reinstatement.
Rita Krishna, Cabinet member for children’s services at Hackney, said: “Our priority is to ensure children’s education is not disrupted. We will publish the findings of the investigation in due course.”