Davos founder Klaus Schwab has been accused of manipulating World Economic Forum research

He allegedly used company funds to pay for private massages, and asked junior staff to withdraw thousands of dollars on his behalf.

The World Economic Forum announced on Tuesday that it has launched an investigation into its founder, following a whistleblower letter alleging misconduct by the former chairman.

The announcement came a day after Schwab abruptly resigned as chairman without giving a reason.

The allegations, reportedly sent last week in a letter to the WEF, accuse Schwab and his wife Hilde, of financial and ethical misconduct. They have denied the allegations.

According to the Guardian: The accusations prompted Schwab’s resignation as the WEF executive chair on Monday after its board of high-profile trustees – which includes the BlackRock chief, Larry Fink; the IMF managing director, Kristalina Georgieva; the former US vice-president Al Gore and cellist Yo-Yo Ma – held an emergency meeting to look into the claims on Sunday.

Schwab, 87, is said to have argued against the board’s plan for an investigation, before he resigned. The founder had indicaated he intended to step down in early April, but the whistleblower letter brought forward his exit.

Schwab, known as “Mr Davos”, founded the WEF in 1971. It hosts the annual conference in the Swiss ski resort, which draws prime ministers, CEOs, celebrities and top financiers.

The whistleblower letter included a range of claims against the Schwab family, according to the Wall Street Journal and Financial Times. They include an allegation that Schwab used WEF funds to pay for private, in-room massages at hotels, asked staff to promote him for a Nobel peace prize, and instructed junior employees to withdraw thousands of dollars from ATMs on his behalf.

The letter also accused Schwab of manipulating the WEF global competitiveness report in order to curry favour with certain governments. The publication ranks countries based on criteria such as education, infrastructure, labour market and health systems, and is a point of reference for the annual Davos meeting.

Some allegations also extended to Schwab’s wife, Hilde, who formerly worked at the WEF. They suggested she scheduled “token” meetings using WEF money to justify luxury travel at WEF’s expense. The letter claims that Hilde also maintained tight control over the use of Villa Mundi, a grand property bought by the WEF overlooking Lake Geneva, and that portions of the building were reserved for the family’s private access.

The Schwabs have reportedly denied all the allegations, saying they were unsubstantiated and would be challenged in a lawsuit. A statement sent on behalf of the family to some media outlets on Wednesday claimed Schwab had been the victim of a “character assassination”.

The WEF board of trustees has appointed the former Nestlé chief executive Peter Brabeck-Letmathe as interim chair, but is searching for a permanent replacement.