A fired hedge fund trader has hit back at allegations he slept with a prostitute at Davos, instead claiming the woman he stayed with was actually the girlfriend of married ex-Google CEO Eric Schmidt.
Daniel Michalow, 37, has launched legal action against D.E. Shaw, suing them for defamation and seeking millions in damages and an apology after he left the company in March 2018, The Daily Beast reports.
He claims the $50 billion company asked its lawyers to speak with his former colleagues and to look through internal communications for incriminating evidence. Michalow says the company defamed him in communicating his firing.
A source said one such allegation put to employees was that Harvard graduate Michalow had slept with a prostitute at the World Economic Forum in Davos in 2018, where he represented the hedge fund.
It is understood the woman was actually his friend and the girlfriend of 64-year-old Schmidt, who is understood to have been at the high profile event with his wife of 39 years, Wendy.
Dubbed ‘New York’s hottest bachelor’ despite his wife, Schmidt – who boasts a $13.2 billion fortune – is a part-owner of D.E. Shaw.
Daniel Michalow, pictured, has hit back at allegations he slept with a prostitute at Davos, instead claiming the woman he stayed with was actually the girlfriend of Eric Schmidt
Despite being legally married to Wendy, left, Schmidt, right, has reportedly had relationships with a series of younger women. The couple are pictured in 2016
Text messages show how senior portfolio manager Michalow told D.E. Shaw Managing Director Max Stone one lunch was ‘awesome’, writing: ‘I was at table with Eric Schmidt, King and Queen of Jordan, Kushner.’
Stone is said to have replied: ‘Any photos from lunch? And did Eric Schmidt have any of his 18-year-old girlfriends with him?’
D.E. Shaw General Counsel Martin Lebwohl is then said to have asked employees about the woman with a view to incriminating Michalow and seemingly unaware she was dating Schmidt.
One source told The Daily Beast: ‘Lebwohl was asking if Dan had showed up with anyone who reflected poorly on the firm. I think what they were asking was, ‘Was there a prostitute?’ They were trying to find out if there was some type of improper relationship in Davos to use against Dan.’
Eric Schmidt pictured at the World Economic Forum (WEF) in Davos in 2015
Schmidt has been married to wife Wendy since 1980 – however the pair do not publicly comment on their relationship. They are pictured together in 2011
A spokesperson for D.E. Shaw told the website: ‘The D.E. Shaw group is committed to an environment of mutual respect, in which everyone is free from harassment or discrimination of any kind.
‘Mr. Michalow’s account is inaccurate and his claims are meritless. We will defend ourselves in the arbitration.’
They did not explain why the account was ‘inaccurate and meritless’. Schmidt did not comment on the claims. One of Michalow’s lawyers, Tom Clare, told The Financial Times: ‘Clearly, D.E. Shaw continues to be worried about competing with Mr. Michalow. When he voluntarily departed, the firm tried to extract a non-compete from Mr. Michalow. Then they defamed him in the press.’
Daniel Michalow, pictured, has launched legal action against D.E. Shaw
DailyMail.com has contacted a lawyer for Michalow and D.E. Shaw for comment.
Michalow had been placed on a two-week suspension in February 2018 after he allegedly made a joke about calling an assistant ‘sugar-tits.’
Two days later it was announced he had ‘retired’ before Michalow then announced his plans to continue working.
The company then issued a statement accusing him of ‘gross violations of our standards and values’.
Michalow then posted a letter to social media, writing: ‘There are many, many stories of employees hooking up over the years after the company’s lavish, alcohol-filled parties.
‘D. E. Shaw also has highly problematic diversity issues, in my view.’
In August last year it was reported that Schmidt had split with his 32-year-old girlfriend, ex Olympic skater Alexandra Duisberg, just weeks after he gave her a pink sapphire ring sparking engagement rumors.
Former medical student Duisberg, who is the same age as his daughter, Sophie, had reportedly frozen her eggs and asked the tech boss to fertilize them with the hopes of starting a family together, but he declined. The two reportedly met at a party in 2017 and had been seemingly inseparable since.
Schmidt was also said to have been spending time with former Miss Ireland Emma Waldron. The 30-year-old beauty queen was pictured with the tech boss at a gala in May 2019 and at an event for Nancy Pelosi.
In August last year it was reported that Schmidt had split with Alexandra Duisberg, pictured in 2019, just weeks after he gave her a pink sapphire ring sparking engagement rumors
TV personality Kate Bohner, aged 52, allegedly had a three-year affair with the married mogul from 2007 to 2010. In the past, Schmidt had been linked to Lisa Shields, a foreign relations executive and Vietnamese pianist Chau-Giang Thi Nguyen, right
Schmidt has been married to wife Wendy since 1980. They met at Berkeley University in the late 1970s and have two adult daughters, Sophie and Alison.
A 2012 New York Times article stated that the pair often spend time apart, and do not comment publicly about their relationship .
Despite being legally married to Wendy, Schmidt has reportedly had relationships with a series of younger women, including a vivacious television host who dubbed him ‘Dr Strangelove,’ a public relations executive and a Vietnamese concert pianist.
In the past, Schmidt had been linked to Lisa Shields, a foreign relations executive and Vietnamese pianist Chau-Giang Thi Nguyen.
Meanwhile, Wendy reportedly resides at one of their homes, a $23million waterfront mansion on Nantucket Island, Massachusetts, where she focuses on her philanthropic work.
TV personality Kate Bohner, aged 52, allegedly had a three-year affair with the married mogul from 2007 to 2010.
At the time, Schmidt was at the height of his power. He was brought in as Google’s CEO in 2001 by creators Sergey Brin and Larry Page, who relied on his expertise to turn their modest internet search engine into a global media powerhouse.
He left the board of parent company Alphabet in 2017 and was CEO of Google from 2001 to 2011. He invested in D.E. Shaw in 2015.
An ex-flame of Schmidt’s said that it’s unlikely the tech powerhouse is interested in settling down.
‘I think there are a lot of women who date him who think they are going to be the next Mrs. Schmidt,’ the anonymous woman stated.
‘But he dates a lot of women. He likes to have a ship in every port.’