Best Buy Ousts Founder for Sex Scandal Coverup

The man who founded Best Buy announced his resignation today, after an investigation found that Richard Schulze had known about ex-CEO Brian Dunn's affair with a female employee, but hadn't alerted the audit committee, the AP reports. Best Buy had until now kept mum about reports of Dunn's dalliances, but today it announced that an outside law firm it had hired to investigate found that Dunn had a "close personal relationship" with a female employee.

Investigators said Dunn had exercised poor judgment, but had not, as had been rumored, misused company resources or aircraft. But the inquiry found the Schulze had acted improperly by keeping the relationship quiet. Schulze has been with the company for its entire 46-year history. He will be replaced by audit committee chair Hatim Tyabji. (More Best Buy stories.)