For Whitefish venture capitalist, a messy sex scandal arises

Calling his accuser “a woman scorned” consumed by anger, obsession and jealousy, Whitefish philanthropist Michael Goguen says he is being extorted by a woman who claims in a lawsuit that he sexually abused her during their 13-year relationship.

Goguen, 52, filed a cross-complaint Monday in San Mateo County court that alleges California resident Amber Laurel Baptiste, 35, fabricated accusations of sexual abuse in an attempt to “shakedown” Goguen for tens of millions of dollars and “punish him for rejecting her.”

“The reality is that Ms. Baptiste was an exotic dancer, first looking for a payday, and later revenge,” Goguen’s legal filing states.

Baptiste — who claims she has been the victim of human trafficking since she was 15 — filed her initial complaint last week alleging Goguen sexually and emotionally abused her during their relationship and then refused to pay her an agreed-upon $40 million to keep her quiet about the abuse. Goguen’s relationship with Baptiste occurred while she was an adult.

Baptiste says Goguen paid her an initial $10 million but hasn’t paid the remaining balance. She is suing for breach of contract and asking the court to reward her the remaining $30 million.

Goguen lives part-time in his sprawling estate at Two Bear Ranch on the west shore of Whitefish Lake and is a prominent philanthropist in the Flathead.

He earned his wealth as a venture capitalist at California-based Sequoia Capital. He was released from his post at the company last week following the accusations.

“We understand the allegations about Michael Goguen are unproven and unrelated to Sequoia. Still, we decided his departure was appropriate,” Sequoia said in a statement.

In Goguen’s cross-complaint, he says Baptiste hatched a plan to make him pay, both financially and emotionally, after he ended their more than decade-long love affair. He denies the accusations of rape, physical and emotional abuse and the claim that he infected her with a sexually transmitted disease.

“Far from being a victim of any sort of abuse or mistreatment of any kind, Ms. Baptiste fell deeply in love with Mr. Goguen directly because of his kind, caring, and compassionate treatment of her at every moment of their relationship. Ms. Baptiste ultimately wanted him to choose her as his life partner and father of her children,” the cross-complaint states.

According to the court document, Baptiste was working as an exotic dancer when she met Goguen in 2002. Bruce Van Dalsem, one of Goguen’s lawyers, provided a copy of Baptiste’s Texas marriage license, from November 2002, stating that she was born on Oct. 18, 1980, in Edmonton, Alberta. If the license is accurate, Baptiste would have been 21 when she and Goguen met in March 2002.

A friendship and intimate relationship spanned the next decade.

“They saw one another occasionally, typically no more than a few times a year, largely at Ms. Baptiste’s request,” the complaint states. 

Goguen says the relationship was entirely consensual at all times and that he was up front with Baptiste that it wasn’t monogamous, noting that he was married at various times throughout their relationship.

“Ms. Baptiste was at all times a willing and enthusiastic sexual partner,” the document states. “In addition to applying to be Mr. Goguen’s forever mistress, she repeatedly complimented him on his lovemaking, as well as his kind and generous nature.”

According to the document, Baptiste told Goguen that “[y]ou provide me freedom from stripping which equals bliss for me. And I become your mistress and you my secret intimate partner. I can come see you on your trips and make you the happiest man alive.”

Goguen says that during their relationship he provided Baptiste with “hundreds of thousands of dollars” that enabled her to quit her job as a dancer.

Baptiste’s initial complaint paints a different picture of their relationship. She says she “submitted to Mr. Goguen’s constant sexual abuse,” relying on the promise that he would help her break free of the human traffickers and he would protect her from them.

She claims that over the course of their relationship she was subjected to countless hours of sexual and verbal abuse and “demeaning” sexual rituals. In one alleged incident, her complaint states, Goguen left Baptiste alone, bleeding on the floor of a hotel room in a foreign country.

She also claims Goguen infected her with human papillomavirus, putting her at risk of various cancers.

Her complaint describes Goguen as “a worse predator than the human traffickers.”

After confronting Goguen about the sexually transmitted disease, her complaint alleges, Baptiste says Goguen agreed to pay her expenses as compensation for the alleged past abuse. The complaint says Goguen paid those expenses for a year until mid-2013 when he refused to make any more payments. 

At that point, the complaint states, Baptiste prepared to sue Goguen for “the years of physical abuse, emotional trauma, and damage to her health.” But when Goguen learned he was being sued, the complaint states, he forced Baptiste to fire her attorney and then used his own legal team to draft the $40 million agreement to keep Baptiste quiet.

Goguen’s cross-complaint argument relies on a long string of emails and texts sent between Goguen and Baptiste that he says contradicts Baptiste’s claims of abuse. He says within those messages she sent hundreds of “provocative photographs and erotic emails” meant to seduce him.

In these text exchanges, Baptiste allegedly called Goguen names such at “Prince Charming,” “My Sweet Sweet Sunshine” and “The most wonderful man in my whole world.”

In one exchange, Goguen claims she wrote: “You are like a shining star. When I am with you I get to forget everything else in my world and just enjoy the sheer ecstasy that my body experiences with your every touch.”

Goguen says their relationship eventually soured. He says Baptiste was resentful and bitter about his marriage, and became delusional.

“She frequently referred to her supposed ‘psychic’ abilities and seeing things on a ‘screen’ in her head,” his complaint states.

Goguen says that after he ended their relationship, Baptiste allegedly threatened she would go public with the accusations of sexual abuse unless Goguen agreed to the $40 million payment.

According to the cross-complaint, “Mr. Goguen’s wife had recently given birth to their youngest child, and he has other children who would read about the horrific things being said about their father. He implored Ms. Baptiste not to destroy his children. But she persisted.”

Goguen says he felt he had no choice but to pay Baptiste due to her “incessant and relentless extortion and blackmail.”

Goguen claims he made the first of the four $10 million payments called for under their agreement, but that Baptiste kept sending harassing text messages after signing the document. A no-contact clause was a key provision of the agreement, his complaint states.

According to Goguen, in one text Baptiste threatened to send him to jail unless he accelerated the payment schedule.

“When Mr. Goguen realized that Ms. Baptiste had no intention of keeping her promise to leave him in peace, he decided to take a stand and face her,” the complaint states.

“Mr. Goguen has come to realize that keeping quiet and satisfying Ms. Baptiste’s exorbitant financial demands will not stop her harassment, and he is willing to face her and protect his family and his reputation.”

According to Goguen, in December 2014 his attorney informed Baptiste that he would not make further payments, and that through extortion their agreement was null and void.

But Baptiste kept pushing, Goguen states. 

“Doubling down on her extortionate ways, Ms. Baptiste upped the ante once again with threats to take public even more outrageous and malicious accusations that are wholly divorced from reality unless Mr. Goguen acceded to her demand for an additional $30 million,” the court document states.

After Goguen refused, he states, Baptiste filed her complaint.

Goguen is asking the court to declare the agreement is null and void, and have Baptiste return the $10 million payment. He is also asking for punitive damages, attorney fees, a restraining order against Baptiste and destruction of any unlawful recordings Baptiste might have.

Goguen’s philanthropic and business investments in the Flathead Valley are far-reaching. 

He has helped bankroll the Whitefish Trail effort and the Two Bear Air helicopter rescue service and was a key contributor to building the North Valley Food Bank’s new facility in Whitefish. In 2012, he committed $2 million to the Montana Internet Crimes Against Children Task Force.

He owns Casey’s Bar in downtown Whitefish and recently purchased the former North Valley Hospital property on U.S. 93 South. He is a lead investor in Proof Research, a high-end weapon manufacturer based in Kalispell.