Investigations begin against Klaus Schwabı, founder of the World Economic Forum

The charges, reportedly sent last week in a letter addressed The WEF, which organises the annual meeting of economic leaders in Davos in Switzerland.

Schwab and his wife, Hilde, are accused of improper financial and ethical behavior that the family has denied.

The charges prompted Schwab's resignation as executive chairman of the WEF on Monday following the board of high profile managers -- which includes BlackRock chief Larry Fink; IMF Managing Director Kristalina Georgieva; former US Vice President Al Gore and cellist Yo-Yo Ma -- held an urgent meeting to review claims Sunday.

The 87-year-old, reportedly has argued against the board's plan for an investigation before resigning.

The founder had indicated that he intended to resign in early April.

Schwab, known as “Mr. Davos”, founded the WEF in 1971. He hosts the annual conference at the Swiss ski resort, which draws the prime ministers, CEOs, celebrities and leading finance.

The complaint included a series of claims against the Schwab family, According to the Wall Street Journal i n Financial Times.

They include a claim that Schwab used WEF funds to pay private massages in hotel rooms, urged the staff to promote it for a Nobel Peace Prize, and instructed new employees to withdraw thousands of dollars from ATMs in his name.

The letter also accused Schwab of manipulating the WEF's global competition report to win the favor of several governments. The publication ranks countries based on criteria such as education, infrastructure, the labour market and health systems, and is a reference point for Davos' annual meeting.

Several charges were also laid out for Schwab's wife, Hilde, who previously worked in the WEF. They suggested that she plan meetings using WEF money to justify luxury trips at the expense of the WEF. The letter claims that Hilde also held strict control over the use of Villa Mundi, a stately property purchased by the WEF with views from Geneva Lake and that parts of the building were reserved for private family access.

Schwabs reportedly denied all charges, saying they were unfounded and would be contested in an indictment. A statement sent on the family's behalf for several media Wednesday claimed that Schwab had been the victim of a “character murder”.

WEF's trusted board has named former chief executive of Nestlé Peter Brabeck-Letmathe as interim chairman, but is in search of a permanent replacement.

Schwab's resignation marks the end of a 54-year career at the helm of the WEF and follows a previous board investigation into the workplace's culture. /Periscope/