Linda Simon used a private investigator to allegedly discover her husband had been accessing the website sugardaddy.com to conduct extramarital affairs.
She also claimed David Simon gave $250,000 in “hush money” to a woman he had a child with last year.
David Simon is believed to have been living at the Setai Hotel, New York since the end of July.
In August, David Simon, who is a frequent commentator for CNBC, sued his wife and her divorce lawyer Jason Advocate for $25 million at Manhattan Civil Court.
David Simon alleged they had copied his hard drive which contained “trade secrets” from his company Twin Capital Management and his personal financial information.
The lawsuit said David Simon was the only person with the password and his company’s computer-monitoring service showed someone accessed his PC after he left home.
Responding to the claims for the first time, Linda Simon admitted that she broke into the computer with the help of surveillance firm T&M Protection Resources.
According to the filing obtained by The New York Post, Linda Simon stated: “Simon was a <<sugar daddy>> to several young women through a Web site called sugardaddy.com and was spending thousands of dollars per week paying these women <<allowances>> to be at his beck and call.”
Sugardaddy.com has more than 1.5 million members and aims to set up rich, older men with young attractive women, so called “sugar babies”.
David Simon’s hedge fund tried to have Jason Advocate removed as Linda Simon’s lawyer as he was also been sued in the hacking case.
The motion to have Jason Advocate dismissed as Linda Simon’s attorney was denied at Manhattan Civil Court yesterday by Judge Jeffrey Oing.
The lawsuit is ongoing with another court date scheduled for April 11 next year.
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